A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-29-300 SO AS CREATE THE WORKFORCE DEPARTMENT APPELLATE PANEL WITHIN THE DEPARTMENT OF WORKFORCE, TO PROVIDE FOR THE FILLING OF A VACANCY, TO REQUIRE THE PRESENT MEMBERS OF THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION MUST CONSTITUTE THE INITIAL MEMBERSHIP OF THE NEW PANEL, TO PROVIDE THE PANEL SHALL DISSOLVE WHEN THE MEMBERS' TERMS EXPIRE IN 2012, AND TO PROVIDE RELATED APPELLATE PROCEDURES; BY ADDING SECTION 41-29-310 SO AS TO TRANSFER THE WORKFORCE INVESTMENT ACT PROGRAM FROM THE DEPARTMENT OF COMMERCE TO THE DEPARTMENT OF WORKFORCE; TO AMEND SECTION 1-30-10, AS AMENDED, RELATING TO DEPARTMENTS WITHIN THE EXECUTIVE BRANCH OF STATE GOVERNMENT, SO AS TO CREATE THE SOUTH CAROLINA DEPARTMENT OF WORKFORCE WITHIN THE EXECUTIVE BRANCH; TO AMEND SECTION 41-29-10, RELATING TO THE EMPLOYMENT SECURITY COMMISSION, SO AS TO PROVIDE THAT CERTAIN CHAPTERS WITHIN TITLE 41 MUST BE ADMINISTERED BY THE DEPARTMENT OF WORKFORCE AND TO DELETE REFERENCES TO THE EMPLOYMENT SECURITY COMMISSION; TO AMEND SECTION 41-29-20, RELATING TO THE CHAIRMAN, QUORUM, AND FILLING OF A VACANCY ON THE EMPLOYMENT SECURITY COMMISSION, SO AS TO DELETE THE EXISTING LANGUAGE AND TO PROVIDE THE DEPARTMENT OF WORKFORCE MUST BE MANAGED AND OPERATED BY A DIRECTOR APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE, AND THAT THE DIRECTOR IS SUBJECT TO REMOVAL BY THE GOVERNOR AT HIS DISCRETION BY EXECUTIVE ORDER; TO AMEND SECTION 41-29-30, RELATING TO THE APPOINTMENT OF A SECRETARY OF THE EMPLOYMENT SECURITY COMMISSION, SO AS TO DELETE THE EXISTING LANGUAGE AND PROVIDE THE DIRECTOR OF THE DEPARTMENT OF WORKFORCE OR HIS DESIGNEE MUST RECEIVE ANNUAL COMPENSATION AS PROVIDED BY THE GENERAL ASSEMBLY AND OFFICIAL EXPENSES AS PROVIDED BY LAW FOR EXECUTING THE DUTIES AND FUNCTIONS OF THE DEPARTMENT; TO AMEND SECTION 8-17-370, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE EMPLOYEE GRIEVANCE PROCESS, SO AS TO INCLUDE EMPLOYEES OF THE DEPARTMENT OF WORKFORCE AMONG THOSE EXEMPTED; TO AMEND SECTIONS 41-27-10, 41-27-30, 41-27-150, 41-27-160, 41-27-190, 41-27-210, AS AMENDED, 41-27-230, 41-27-235, AS AMENDED, 41-27-260, AS AMENDED, 41-27-360, 41-27-370, AS AMENDED, 41-27-380, 41-27-390, 41-27-510, 41-27-550, 41-27-560, 41-27-570, 41-27-580, 41-27-600, 41-27-610, 41-27-620, 41-27-630, 41-27-670, 41-29-40, 41-29-50, 41-29-60, 41-29-70, 41-29-80, 41-29-90, 41-29-100, 41-29-110, 41-29-120, AS AMENDED, 41-29-130, 41-29-140, 41-29-150, 41-29-170, AS AMENDED, 41-29-180, 41-29-190, 41-29-200, 41-29-210, 41-29-220, 41-29-230, 41-29-240, 41-29-250, 41-29-270, 41-29-280, 41-29-290, 41-33-10, 41-33-20, 41-33-30, 41-33-40, 41-33-45, 41-33-80, AS AMENDED, 41-33-90, 41-33-100, 41-33-110, 41-33-120, 41-33-130, 41-33-170, 41-33-180, 41-33-190, 41-33-200, 41-33-210, 41-33-430, 41-33-460, 41-33-470, 41-33-610, 41-33-710, 41-35-10, 41-35-30, 41-35-100, 41-35-110, AS AMENDED, 41-35-115, AS AMENDED, 41-35-120, AS AMENDED, 41-35-125, 41-35-126, 41-35-130, AS AMENDED, 41-35-140, 41-35-330, 41-35-340, 41-35-410, 41-35-420, AS AMENDED, 41-35-450, 41-35-610, 41-35-630, 41-35-640, AS AMENDED, 41-35-670, 41-35-680, AS AMENDED, 41-35-690, 41-35-700, 41-35-710, AS AMENDED, 41-35-720, 41-35-730, 41-35-740, 41-35-750, AS AMENDED, 41-37-20, 41-37-30, 41-39-30, 41-39-40, 41-41-20, AS AMENDED, 41-41-40, AS AMENDED, 41-41-50, 41-42-10, 41-42-20, 41-42-30, AND 41-42-40, ALL RELATING TO VARIOUS DEPARTMENT PROVISIONS, SO AS TO CONFORM THEM TO THE REPLACEMENT OF THE EMPLOYMENT SECURITY COMMISSION WITH THE DEPARTMENT OF WORKFORCE; AND TO REPEAL SECTION 41-29-260 RELATING TO THE ABILITY OF COMMISSIONERS OF THE EMPLOYMENT SECURITY COMMISSION TO FILE OPINIONS OR OFFICIAL MINUTES.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

Part I

Creation of Workforce Department Appellate Panel,

Transfer of Workforce Management Act Program to Department of Workforce, Creation of Department of Workforce, and

Replacement of the Employment Security Department

With the Department of Workforce

SECTION 1. Chapter 29, Title 41 of the 1976 Code is amended by adding:

"Section 41-29-300. (A) There is created the Workforce Department Appellate Panel within the Department of Workforce, which is separate and distinct from the department's divisions. The sole purpose of the panel is to hear and decide appeals from decisions of the department's divisions.

(B)(1) The panel is comprised of the members of the South Carolina Employment Security Commission. The commissioners must be elected in the manner provided in this subsection. The members of the South Carolina Employment Security Commission serving on the effective date of this section shall be initial members of the panel.

(2) The commissioners must be elected by the General Assembly, in joint session, for terms of four years and until their successors have been elected and qualified, commencing on the first day of July in each presidential election year.

(3) The commission must elect one of its members to be chairman. A vacancy must be filled by the Governor through a temporary appointment until the next session of the General Assembly, at which time a joint session of the General Assembly shall elect a commissioner to fill the unexpired term.

(4) The commissioners shall receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the general appropriations act.

(C)(1) A party may only appeal from a decision of the department directly to the panel. A party may only appeal a decision of the panel to in the court of common pleas, either in the county in which the employee resides or the county in which he was last employed in the manner provided in Section 41-35-750. (D) A quorum must consist of all three panel members and is necessary to hear or decide an appeal under item (C)(1). A decision of the panel must be rendered in writing and is subject to disclosure under the Freedom of Information Act.

(E)(1) A person must be screened and found qualified in the manner provided in Chapter 20, Title 2 before he may be elected to serve as a commissioner. The qualifications that each commissioner must possess, include, but are not limited to:

(a) a baccalaureate or more advanced degree from:

(i) a recognized institution of higher learning requiring face-to-face contact between its students and instructors prior to completion of the academic program;

(ii) an institution of higher learning that has been accredited by a regional or national accrediting body; or

(iii) an institution of higher learning chartered before 1962; or

(b) a background of at least five years in any combination of the following fields of expertise:

(i) general business administration;

(ii) general business management;

(iii) management at the Department of Workforce, or its predecessor;

(iv) human resources management;

(v) finance; or

(vi) law.

(2) No member of the General Assembly or member of his immediate family shall be elected to be a commissioner while the member is serving in the General Assembly; nor shall a member of the General Assembly or a member of his immediate family be elected or appointed to be a commissioner for a period of two years after the member either:

(a) ceases to be a member of the General Assembly; or

(b) fails to file for election to the General Assembly in accordance with Section 7-11-15.

(3) The initial members of the panel do not have to meet the qualifications for election contained in this subsection during their continued tenure as a commissioner. Initial commissioners may not seek reelection.

(F)(1) The commissioners are bound by the Code of Judicial Conduct, as contained in Rule 501 of the South Carolina Appellate Court Rules, and the State Ethics Commission is responsible for enforcement and administration of Rule 501 pursuant to Section 8-13-320. Commissioners must also comply with the applicable requirements of Chapter 13 of Title 8.

(2) Each year, the commissioners and their administrative assistants must attend a workshop of at least three continuing education hours concerning ethics.

SECTION 2. Chapter 29, Title 41 of the 1976 Code is amended by adding:

"Section 41-29-310. The Workforce Investment Act program created by the Workforce Investment Act of 1988 and transferred to the Department of Commerce by Executive Order 2005-09 is transferred to the Department of Workforce on the effective date of this section."

SECTION 3. Section 1-30-10(A) of the 1976 Code is amended to read:

"(A) There are hereby created, within the executive branch of the state government, the following departments:

1. Department of Agriculture

2. Department of Alcohol and Other Drug Abuse Services

3. Department of Commerce

4. Department of Corrections

5. Department of Disabilities and Special Needs

6. Department of Education

7. Department of Health and Environmental Control

8. Department of Health and Human Services

9. Department of Insurance

10. Department of Juvenile Justice

11. Department of Labor, Licensing, and Regulation

12. Department of Mental Health

13. Department of Natural Resources

14. Department of Parks, Recreation and Tourism

15. Department of Probation, Parole, and Pardon Services

16. Department of Public Safety

17. Department of Revenue

18. Department of Social Services

19. Department of Transportation

20.Department of Workforce"

SECTION 4. Section 41-29-10 of the 1976 Code is amended to read:

"Section 41-29-10. Chapters 27 through 41 of this title shall be administered by the South Carolina Employment Security CommissionDepartment of Workforce. The Commission shall consist of three members to be elected by the General Assembly, in joint session, for terms of four years and until their successors have been elected and qualified, commencing on the first day of July in each presidential election year. Any vacancy occurring shall be filled by appointment by the Governor for the temporary period until the next session of the General Assembly, whereupon the General Assembly shall elect a commissioner to fill the unexpired term. Each commissioner shall receive an annual salary payable in monthly installments."

SECTION 5. Section 41-29-20 of the 1976 Code is amended to read:

"Section 41-29-20. (A)The Commission shall elect one of its members as chairman. Any two commissioners shall constitute a quorum and no vacancy shall impair the right of the remaining commissioners to exercise all of the powers of the Commission through action of a quorum.There is hereby created the South Carolina Department of Workforce which must be managed and operated by an executive director appointed by the Governor upon the advice and consent of the Senate. The executive director is subject to removal by the Governor as provided in Section 1-3-240(B). The director shall receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the general appropriations act. For the purposes of this chapter, 'department' means the South Carolina Department of Workforce.

(B)The executive director shall appoint assistant directors and area directors as needed for the effective and efficient operation of the department who shall serve at the pleasure of the executive director."

SECTION 6. Section 41-29-30 of the 1976 Code is amended to read:

"Section 41-29-30. The Commission shall appoint in accordance with Section 41-29-70 an administrator who shall act as secretary and chief executive officer of the Commission and who shall, when the Commission is not in session, exercise the powers and authority of the Commission, subject to the approval or disapproval of the Commission at its next meeting.The director or his designee must receive annual compensation as provided by the General Assembly and official expenses as provided by law for executing the duties and functions of the department."

SECTION 7. Section 8-17-370 of the 1976 Code, is further amended by adding a new item at the end appropriately numbered to read:

"( ) the executive director, assistant directors, and the area directors of the South Carolina Department of Workforce created pursuant to Section 1-30-10(A)(20)."

SECTION 8. Chapter 27, Title 41 of the 1976 Code is amended by adding:

"Section 41-27-650. (A) The Department of Commerce and the Department of Workforce must work in conjunction to develop or procure computer hardware, software, and other equipment that are compatible with each other as needed to efficiently address the State's policy goals as set forth in Section 41-27-20. Once information technology is attained, the departments must regularly develop reports that address relevant workforce issue and make the reports available to workforce training entities, including, but not limited to, the State Board for Technical and Comprehensive Education, the Commission on Higher Education, and the State Agency of Vocational Rehabilitation. Additionally, the departments must promptly respond to inquiries for information made by education and workforce training entities.

(B) The department must work in conjunction with the State Budget and Control Board to coordinate its computer system with computer systems of other state agencies so that the department may more efficiently match unemployed persons with available jobs. The department must provide a progress report concerning implementation of this subsection to the Chairman of the Senate Labor Commerce, and Industry Committee, the Chairman of the House of Representatives Labor, Commerce, and Industry Committee, and the Governor every three months until fully implemented."

SECTION 9. Section 41-33-45 of the 1976 Code is amended to read:

"Section 41-33-45. The commission shall report, by October first of each year, to the Senate Finance CommitteeGeneral Assembly and to the House Ways and Means Committeethe Governor the amount in the unemployment trust fund and make an assessment of its funding level."

SECTION 10. Section 41-31-10(A) of the 1976 Code is amended to read:

"Section 41-31-10. (A) Each employer shall pay contributions equal to five and four-tenths percent of wages paid by him during each year except as may be otherwise provided in Chapters 27 through 41 of this title. Employers may prepay their required contributions to the fund. The department must promulgate regulations regarding the methodology by which the allowed prepayment amounts will be calculated and the manner in which they will be credited to the employer's account."

SECTION 11. The commission must file a report with the General Assembly and the Governor on or about January 1, 2011, making recommendations concerning restoration of the solvency of the unemployment trust fund.

Part II

Conforming and Miscellaneous Amendments

SECTION 12. Section 41-27-10 of the 1976 Code is amended to read:

"Section 41-27-10. Chapters 27 through 41 of this title shall be known and may be cited as the 'South Carolina Employment Security LawDepartment of Workforce.'

SECTION 13. Section 41-27-30 of the 1976 Code is amended to read:

"Section 41-27-30. Nothing in Chapters 27 through 41 of this

title shallmust be construed to cause the Commissiondepartment or the courts of this State in interpreting suchthese chapters to be bound by interpretations as to liability or nonliability of employers by Federal administrative agencies, nor is it the intent of the General Assembly to require an identical coverage of employers under suchthese chapters with that undercoverage requirements pursuant to Section 3101 et seq. of the Federal Internal Revenue Code."

SECTION 14. Section 41-27-150 of the 1976 Code is amended to read:

"Section 41-27-150. 'Base period' means the first four of the last five completed calendar quarters immediately preceding the first day of an individual's benefit year; provided that. However, in the case of a combined wage claim filed by an individual in accord with an arrangement entered into by the commission underdepartment pursuant to the provisionprovisions of Section 41-29-140(2), the base period shall beis that applicable underprovided by the law of the paying state."

SECTION 15. Section 41-27-160 of the 1976 Code is amended to read:

"Section 41-27-160. 'Benefit year' means the one-year period beginning with the day as of which an insured worker first files a request for determination of his insured status, and thereafterafterward the one-year period beginning with the day as ofby which he next files suchthis request after the end of his last preceding 'benefit year'; provided, that in the case of a combined wage claim filed by an individual in accord with an arrangement entered into by the commission underdepartment pursuant to the provisions of Section 41-29-140(2), the benefit year shall beis that applicable underprovided by the law of the paying state. The filing of a notice of unemployment shall be deemedis considered a request for determination of insured status if a current benefit year has not previously been established. RequestsA request for determination of insured status shallmust be made in accordance with suchpursuant to regulations as the commission may prescribedepartment prescribes."

SECTION 17. Section 41-27-210(11) of the 1976 Code is amended to read:

"(11) For purposes of paragraphs (2), (6), (7), and (8), employment shall includeincludes service whichthat would constitute employment but for the fact that suchthe service is deemedconsidered to be performed entirely within another state pursuant to an election underprovided by an arrangement entered into in accordance with Section 41-27-550 by the commissiondepartment and an agency charged with the administration of any otheranother state or federal unemployment compensation law."

SECTION 18. Section 41-27-230(10) of the 1976 Code is amended to read:

"(10) ServicesA service not covered under item 7 of this section and performed entirely without this State, with respect to no part of which contributions are required and paid under an unemployment compensation law of any otheranother state or of the federal government, shall be deemed to beis considered employment subject to Chapters 27 through 41 of this Title if the individual performing such services is a resident of this State and the department approves the election of the employing unit for whom suchthe services are performed that the entire service of suchthe individual shall be deemed to beis considered employment subject to Chapters 27 through 41 of this title."

SECTION 19. Section 41-27-235(C)(2) of the 1976 Code, as last amended by Act 170 of 2004, is further amended to read:

"(2) A Native American tribestribe or tribal unitsunit that electelects to pay benefitsa benefit attributable to service in their employ but failfails to reimburse the required paymentspayment, including an interest and penalty assessmentsassessment, within ninety days of the receipt of a bill, causecauses the Native American tribe to lose the option to make paymentsa payment in lieu of contributionsa contribution for the following tax year unless payment in full is received before the contribution rates for the next year are computed. The commissiondepartment shall notify the United States Internal Revenue Service and the United States Department of Labor of a tribe or tribal unit's failure to make a required paymentspayment within ninety days of a final notice of delinquency."

SECTION 20. Section 41-27-260 of the 1976 Code, as last amended by Act 306 of 2002, is further amended to read:

"Section 41-27-260. The term 'employment' as used in Chapters 27 through 41 of this title shalldoes not include:

(1) labor engaged in the seafood industry, which is defined as persons employed in the commercial netting, catching, and gathering of seafood, and the processing of such seafood for the fresh market;

(2) casual labor not in the course of the employing unit's trade or business;

(3) service performed by an individual in the employ of his son, daughter, or spouse and service performed by a child under the age of eighteen in the employ of his father or mother;

(4) service performed in the employ of the United States Government or anyan instrumentality of the United States immune under the Constitution of the United States from the contributions imposed by Chapters 27 through 41 of this title, except that to the extent that the Congress of the United States shall permitpermits states to require instrumentalities of the United States to make payments into an unemployment fund under a state unemployment compensation act, all of the provisions of Chapters 27 through 41 of this title shall beare applicable to suchthose instrumentalities and to services performed for suchthose instrumentalities, in the same manner, to the same extent and on the same terms as to all other employers; provided, that if this State shall not beis not certified for anya year by the Secretary of Labor or his successors under the Federal Internal Revenue Code, the payments required of suchthose instrumentalities with respect to such year shallmust be refunded by the commissiondepartment from the funds in the same manner and within the same period as is provided in Section 41-31-360 with respect to contributions erroneously collected;

(5) service performed after December 31, 1977, in the employ of a governmental entity referred to in Section 41-27-230(2)(b), if suchthe service is performed by an individual in the exercise of his duties;as:

(a) As an elected official or as the appointed successor of an elected official;

(b) As a member of a legislative body, or a member of the judiciary of a state or political subdivision;

(c) As a member of the State National Guard or Air National Guard;

(d) As an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency; or

(e) in a position whichthat, under or pursuant to the laws of this State, is designated as a major nontenured policymaking or advisory position, or a policymaking position the performance of the duties of which ordinarily does not require more than eight hours per week.;

(6) service with respect to which unemployment compensation is payable under an unemployment compensation system established by an act of Congress; provided, that the commission shalldepartment must enter into agreements with the proper agencies under such act of Congress, which agreements shall become effective ten days after publication thereofof it in the manner provided in Section 41-29-130 for general rules, to provide reciprocal treatment to individuals who have after acquiring potential rights to benefits under Chapters 27 through 41 of this title, acquired rights to unemployment compensation under such act of Congress or who have, after acquiring potential rights to unemployment compensation under such act of Congress, acquired rights to benefits under Chapters 27 through 41 of this title;

(7) service other than service performed as defined in Section 41-27-230(3) performed in the employ of a corporation, community chest, fund or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), anya political campaign on behalf of anya candidate for public office, provided, that service performed in the employ of an organization operated for the primary purpose of carrying on a trade or business for profit shallmay not be exempt on the ground that all of its profits are payable to one or more organizations exempt under this paragraph;

(8) service other than service performed as defined in Section 41-27-230(3) whichthat is performed in anya calendar quarter in the employ of anyan organization exempt from federal income tax under Section 501(a) (other than an organization described in Section 401(a)) or under Section 521 of the Federal Internal Revenue Code of 1954, if the remuneration for such service is less than fifty dollars;

(9) the term 'employment' shalldoes not include:

(a) service performed in the employ of a school, college, or university, if suchthe service is performed by:

(i) by a student who is enrolled and is regularly attending classes at suchthe school, college or university,; or

(ii) by the spouse of suchthe a student, if suchthe spouse is advised, at the time suchthe spouse commences to perform suchthe service that (I) the employment of suchthe spouse to perform suchthe service is provided under a program to provide financial assistance to suchthe student by suchhis school, college, or university, and (II) suchthe employment willis not be covered by anya program of unemployment insurance;

(b) service performed by an individual under the age of twenty-two who is enrolled at a nonprofit or public educational institution whichthat normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at suchthe institution, which combines academic instruction with work experience, if suchthe service is an integral part of suchthe program, and suchthe institution has so certified this to the employer, except that this subparagraph shalldoes not apply to service performed in a program established for or on behalf of an employer or group of employers;

(c) service performed in the employ of a hospital, if suchthe service is performed by a patient of the hospital, as defined in Section 41-27-280.;

(10) for the purposes of Section 41-27-230(2) and (3), 'employment' does not include service performed:

(a) in the direct employ of a church, convention, or association of churches or an organization operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church, convention, or association of churches; or

(b) by an ordained, a commissioned, or a licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by the order; or

(c) in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age, physical or mental deficiency, or injury or providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be absorbed readily in the competitive labor market by an individual receiving rehabilitation or remunerative work; or

(d) before January 1, 1978, for a hospital in a state prison or other state correctional institution by an inmate of the prison or correctional institution and after December 31, 1977, by an inmate of a custodial or penal institution; or

(e) as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by a federal agency, an agency or political subdivision of a state, or an individual receiving work relief or work training, unless a federal law, rule, or regulation mandates unemployment insurance coverage to individuals in a particular work-relief or work-training program; or

(f) by an inmate who participates in a project designated by the Director of the Bureau of Justice Assistance pursuant to Public Law 90-351.;

(11) service performed by an individual under the age of eighteen in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution;

(12) service performed as a student nurse in the employ of a hospital or a nurses' training school by an individual who is enrolled and is regularly attending classes in a nurses' training school chartered or approved pursuant to state law, and service performed as an intern in the employ of a hospital by an individual who has completed a four years'four-year course in a medical school chartered and approved pursuant to state law;

(13) service performed by an individual for an employer as an insurance agent or as an insurance solicitor, if all suchthis service is performed by suchthe individual for suchhis employer is performed for remuneration solely by way of commissiondepartment;

(14) service other than service performed as defined in Section 41-27-230(3) by an individual for an employer as a real estate salesman or agent, if all suchthis service is performed by suchthe individual for suchhis employer is performed for remuneration solely by way of commissiondepartment;

(15) service performed in the employ of a foreign government, including service as a consular or other officer or employee or a nondiplomatic representative.;

(16) 'agricultural labor' as such term is defined by Section 41-27-120 and when performed by students who are enrolled and regularly attending classes for at least five months during a particular year at a secondary school or at an accredited college, university, or technical school and also when performed by part-time persons who do not qualify as students hereunderpursuant to this section but who at the conclusion of their agricultural labor would not qualify for any benefits underpursuant to the provisions of the South Carolina Employment Security Law.department;

(17) servicesservice performed as a member of a Native American tribal council or servicesservice in a fishing rights related activity of a Native American tribe by a member of suchthe tribe for another member of suchthe tribe or by a qualified Native American entity."

SECTION 21. Section 41-27-360 of the 1976 Code is amended to read:

"Section 41-27-360. 'Statewide average weekly wage' means the amount computed by the commissiondepartment as of July first of each year which shall bethat is the aggregate amount of wages,(irrespective of the limitation on the amount of wages subject to contributions by reason of Section 41-27-380(2)), reported by employers as paid during the first four of the last six completed calendar quarters prior to suchbefore this date, divided by a figure representing fifty-two times the twelve-month average of the number of employees in the pay period containing the twelfth day of each month during the same four calendar quarters as reported by suchthose employers."

SECTION 22. Section 41-27-370 of the 1976 Code, as last amended by Act 349 of 2000, is further amended to read:

"Section 41-27-370. (1) An individual is deemedconsidered 'unemployed' in anya week during which he performs no services and with respect to which no wages are payable to him or in anya week of less than full-time work if the wages payable to him with respect to suchthat week are less than his weekly benefit amount. The commissiondepartment must prescribe regulations applicable to unemployed individuals, making such distinctions in the procedures as to total unemployment, part-total unemployment, partial unemployment of individuals attached to their regular jobs, and other forms of short-time work, as the commission deemsdepartment considers necessary.

(2) An individual is deemedconsidered 'unemployed' in anya week during which no governmental or other pension, retirement or retired pay, annuity, or other similar periodic payment which is attributable to his employment is payable to him or, if suchthat payment is payable to him with respect to suchthose weeks, the amount thereofof it is less than his weekly benefit amount. EachAn eligible individual who is unemployed in anya week and who is receiving a governmentalgovernment or other pension, retirement or retired pay, annuity, or other similar periodic payment which is attributable to his employment must be paid with respect to suchthis week a benefit in an amount equal to his weekly benefit amount less the pension, retirement or retired pay, annuity, or other similar periodic payment payable to him with respect to such week. SuchThis benefit, if not a multiple of one dollar, must be computed to the next lower multiple of one dollar. The amount of benefits payable to an individual for anya week whichthat begins after the effective date of the applicable provision in the Federal Unemployment Tax Act and whichthat begins in a period with respect to which suchthis individual is receiving a governmental or other pension, retirement or retired pay, annuity, or other similar periodic payment which is based on the previous work of suchthe individual must be reduced (but not below zero)but by an amount equal to the amount of suchthis pension, retirement or retired pay, annuity, or other payment which is reasonably attributable to such week. However, if the provisions of the Federal Unemployment Tax Act permit, the requirements of this subsection shall only apply in the case of a pension, retirement or retired pay, annuity, or other similar periodic payment under a plan maintained,(or contributed to,) by a base period employer or chargeable employer.

In the event the individual has participated in anya pension, retirement or retired pay, annuity, or other similar plan of the base period employer or chargeable employer by having made contributions to suchthis plan, the weekly benefit amount payable to suchthe individual for suchthat week shallmust be reduced,(but not below zero), by:

(a) by the pro-rated weekly amount of the pension after deductions of that portion of the pension that is directly attributable to the percentage of the contributions made to the plan by such individual; or

(b) by no part of the pension if the entire contributions to the plan were provided by such individual, or by the individual and an employer,(or any other person or organization), who is not a base period employer or chargeable employer; or

(c) by the entire pro-ratedprorated weekly amount of the pension if itemsubitem (a) or item (b) does not apply.

This provision is effective for all weeks commencing on or after August 29, 1982.

For purposes of this subsection, social security benefits are not considered a governmental or other pension, retirement or retired pay, annuity, or other similar periodic payment attributable to the beneficiary's employment. As a result, the offset of social security will be reduced from 50% to 0%fifty to zero percent based on the fact that individuals are required to contribute to social security.

(3) NoAn individual may not be considered as unemployed in anya week in which the commissiondepartment finds that his unemployment is due to a vacation week with respect to which the individual is receiving or has received his regular wages. This subsection is not applicabledoes not apply to anya claimant whose employer fails to comply, in respect to suchthe vacation period, with the requirements of all regulationsa regulation or proceduresprocedure of the commissiondepartment regarding the filing of notices, reportsa notice, report, information, or claimsclaim in connection with individual, group, or mass separationsseparation arising from the vacation.

(4) NoAn individual may not be considered as unemployed in anya week,(not to exceed two in any benefit year), in which the commissiondepartment finds that his unemployment is due to a vacation week whichthat is constituted a vacation period without pay by reason of a written contract between the employer and the employees or by reason of the employer's vacation policy and practice to his employees. This provision applies only if it is found by the commission thatdepartment finds employment will be available for the claimant with the employer at the end of a vacation period as described in this section. This subsection is not applicable to anya claimant whose employer fails to comply, in respect to suchthis vacation period, with the requirements of all regulationsa regulation or proceduresprocedure of the commissiondepartment regarding the filing of notices, reportsa notice, report, information, or claimsclaim in connection with an individual, group, or mass separationsseparation arising from the vacation."

SECTION 23. Section 41-27-380 of the 1976 Code is amended to read:

"Section 41-27-380. (1)(A) 'Wages' means all remuneration paid for personal services, including commissions and bonuses, any sums paid to an employee by an employer pursuant to an order of the National Labor Relations Board or by private agreement, consent, or arbitration for loss of pay by reason of discharge and cash value of all remuneration paid in any medium other than cash. The reasonable cash value of remuneration paid in anya medium other than cash is estimated and determined in accordance withpursuant to regulations prescribed by the commissiondepartment. 'Wages' includes all tip income,(including charged tips),which are received while performing services which constitutea service that constitutes employment and are included in a written statement furnished to the employer. 'Wages' does not include:

(a)(1) the amount of anya payment with respect to services performed in behalf of an individual in its employ underprovided by a plan or system established by an employing unit which makes provision for individuals in its employ generally or for a class or classes of individuals,(including anyan amount paid by an employing unit for insurance or annuities or into a fund to provide for any such payment), on accountbecause of:

(i)(a) retirement,

(ii)(b) sickness or accident disability,

(iii)(c) medical and hospitalization expenses in connection with sickness or accident disability, or

(iv)(d) death, provided the individual is in its employ has not the:

(A)(i)has not the option to receive, instead of provisions for death benefits, any part of payment or, if the death benefit is insured, any part of the premiums (or contributions to premiums) paid by his employing unit; and

(B)(ii)has not the right, under the provisionsa provision of the plan, system, or policy of insurance providing for a death benefit, to assign the benefit or receive a cash consideration in lieu of the benefit either upon his withdrawal from the plan or system providing for the benefit or upon termination of the plan, system, or policy of insurance or of his servicesservice with the employing unit.;

(b)(2)Any amountsan amount received from this State or the Federal Government by membersa member of the South Carolina National Guard, the United States Naval Reserve, the Officers Reserve Corps, the Enlisted Reserve Corps, and the Reserve Corps of Marines as drill pay, including a longevity pay and allowancesallowance.;

(c)(3) the payment by an employing unit,(without deduction from the remuneration of the individual in its employ), of the tax imposed upon an individual in its employ, underpursuant to Section 3101 of the Federal Internal Revenue Code, only if the service is agricultural labor or domestic service in a private home of the employer.;

(d)(4)Anya payment,(other than vacation pay or sick pay), made to an employee after the month in which he attains the age of sixty-five, if he did not work for the employer in the period for which payment is made.;

(e)(5)Anya remuneration paid in a medium other than cash for a service performed in an agricultural labor or domestic service.

(2) For the purpose of Chapter 31, Article 1, of this title, 'wages' does not include that parta portion of remuneration whichthat, after remuneration equal to seven thousand dollars has been paid in a calendar year to an individual by an employer or his predecessor or with respect to employment during anya calendar year, is paid to the individual by the employer during the calendar year unless that part of the remuneration is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund. For the purposes of this subsection, employment includes service constituting employment under any unemployment compensation law of another state."

SECTION 24. Section 41-27-390 of the 1976 Code is amended to read:

"Section 41-27-390. 'Week' means calendar week or sucha period of seven consecutive days asthat the commission may bydepartment prescribes by regulation prescribe. The commission maydepartment likewise may determine that a week shall be deemed to beis considered 'in', 'within', or 'during' that benefit year which includes the greater part of suchthatweek."

SECTION 25. Section 41-27-510 of the 1976 Code is amended to read:

"Section 41-27-510. The commissiondepartment shall prescribe regulations applicable to unemployed individuals, making such distinctions in the procedures as to total unemployment, part-total unemployment, partial unemployment of the individuals attached to their regular jobs and other forms of short-time work as the commission deemsdepartment considers necessary."

SECTION 26. Section 41-27-550 of the 1976 Code is amended to read:

"Section 41-27-550. The commissiondepartment may enter into agreements with the appropriate agencies of other states or the Federal Government whereby individuals performing services in this and other States for a single employing unit under circumstances not specifically provided for in Section 41-27-230 or under similar provisions in the unemployment compensation laws of such other states shall be deemed to be engaged in employment performed entirely within this State or within one of such other states and whereby potential rights to benefits accumulative under the unemployment compensation laws of one or more states or under suchthe law of the Federal Government or both may constitute the basis for the payment of benefits through a single appropriate agency under terms which the commission finds will bedepartment considers fair and reasonable as to all affected interests and will not result in anya substantial loss to the fund, and the commissiondepartment may enter into agreements with appropriate agencies of other states or the Federal Government administering unemployment compensation laws to provide that contributions on wages for services performed by an individual in more than one state for the same employer may be paid to the appropriate agency of one state."

SECTION 27. Section 41-27-560 of the 1976 Code is amended to read:

"Section 41-27-560. NoA report, communication, or any other suchsimilar matter, either oral or written from an employee or employer to the other or to the commissiondepartment or any of its agents, representatives, or employees which shallthat have been written, sent, delivered, or made in connection with the requirements and the administration of Chapters 27 through 41 of this title shallmust be made the subject matter or basis of anya suit for slander or libel in anya court of thethis State."

SECTION 28. Section 41-27-570 of the 1976 Code is amended to read:

"Section 41-27-570. In case of a suit to enjoin the collection of the contributions provided for in Chapters 27 through 41 of this title, to test the validity of suchthose chapters or for any otheranother purpose connected with its duties, the commission shalldepartment must be made a party theretoto it and the Attorney General or counsel for the commissiondepartment shall defend suchthe suit in accordance with the provisions of Section 41-27-580."

SECTION 29. Section 41-27-580 of the 1976 Code is amended to read:

Section 41-27-580. In anya civil action to enforce the provisions of Chapters 27 through 41 of this title, the commissiondepartment and the State may be represented by anya qualified attorney who is employed by the commissiondepartment and is designated by it for this purpose or, at the commission'sdepartment's request, by the Attorney General."

SECTION 30. Section 41-27-600 of the 1976 Code is amended to read:

"Section 41-27-600. The commissiondepartment may compromise anya civil penalty or cause orof action arising under the provisionspursuant to a provision of Chapters 27 through 41 of this title instead of commencing suit thereonon them and may compromise any suchthe case after suit thereon has been commencedon it commences. In suchthese cases the commissiondepartment shall keep on file in its office the reasons for settlement by compromise,;together with a statement on the amount of contribution imposed,; the amount of additional contribution, penalty, or interest imposed by law in consequence of neglect or delinquency; and the amount actually paid in accordance withpursuant to the terms of the compromise."

SECTION 31. Section 41-27-610 of the 1976 Code is amended to read:

Section 41-27-610. The failure to do anyan act required by or underthe provisionspursuant to a provision of Chapters 27 through 41 of this title shall be deemedis considered an act committed in part at the office of the commission in Columbiadepartment."

SECTION 32. Section 41-27-620 of the 1976 Code is amended to read:

"Section 41-27-620. The certificate of the commissiondepartment to the effect that a contribution has not been paid, that a report has not been made, that information has not been furnished, or that records have not been produced or made available for inspection, as required underpursuant to Chapters 27 through 41 of this title, shall beis prima facie evidence thereofof the alleged action."

SECTION 33. Section 41-27-630 of the 1976 Code is amended to read:

"Section 41-27-630. Benefits shall be deemed to beA benefit is considered due and payable underpursuant to Chapters 27 through 41 of this title only to the extent provided in suchthose chapters and to the extent that moneys aremoney is available thereforfor them to the credit of the unemployment compensation fund and neither the State nor the commission shalldepartment must be liable for anyan amount in excess of such sumsthat sum."

SECTION 34. Section 41-29-40 of the 1976 Code is amended to read:

"Section 41-29-40. There are created under the commissiondepartment two coordinate divisions, the South Carolina State Employment Service Division created pursuant to Section 41-5-10, and a division to be known as the Unemployment Compensation Division. Each division shallmust be administered by a full-time salaried director, who shall beis subject to the supervision and direction of the commissiondepartment. The commissiondepartment may appoint, fix the compensation of, and prescribe the duties of the directors of saidthese divisions. SuchThese appointments shallmust be made on a nonpartisan merit basis in accordance with the provisions of Section 41-29-90. The director of each division shall be responsible to the commissiondepartment for the administration of his particularrespective division and shall have such powershas the power and authority as may be vested in him by the commission department."

SECTION 35. Section 41-29-50 of the 1976 Code is amended to read:

"Section 41-29-50. The commissiondepartment shall appoint a Statestatewide advisory council and may appoint local or industry advisory councils, composed in each case of equal numbers of employer representatives and employee representatives, who may fairly be regarded as representatives because of their vocation, employment or affiliations, and of such members representing the general public as the commission may designatedepartment designates. Such councilsA local council shall aid the commissiondepartment in formulating policiesa policy and discussing problems relating to the administration of Chapters 27 through 41 of this title, and in assuring impartiality and freedom from political influence in the solution of suchthose problems. SuchA local advisory councils shallcouncil must serve without compensation, but shallmust be reimbursed for any necessary expenses."

SECTION 36. Section 41-29-60 of the 1976 Code is amended to read:

"Section 41-29-60. The Commissiondepartment shall determine its own organization and methods of procedure in accordance withpursuant to the provisions of Chapters 27 through 41 of this title and shall have an official seal, which shallmust be judicially noticed."

SECTION 37. Section 41-29-70 of the 1976 Code is amended to read:

"Section 41-29-70. Subject to the provisions of Chapters 27 through 41 of this title, the Commissiondepartment may appoint and fix the compensation (subject to the approval of the State Budget and Control Board unless otherwise provided by the General Assembly) and prescribe the duties and powers of such officers, accountants, attorneys, experts, and other persons as may beothers necessary in the performance of itsto perform the department's duties under Chapters 27 through 41 ofpursuant to this title."

SECTION 38. Section 41-29-80 of the 1976 Code is amended to read:

"Section 41-29-80. The Commissiondepartment shall:

(1) classify all positions under Chapters 27 through 41 of this title, except those exempted by the Federal Social Security Act or regulations of the Secretary of Labor or his successors under authority thereof,of them; and

(2)shall establish salary schedules and minimum personnel standards. SuchThose standards shallmust conform to the minimum standards prescribed under the provisions of Section 303(a)(1) of the Federal Social Security Act, as amended."

SECTION 39. Section 41-29-90 of the 1976 Code is amended to read:

"Section 41-29-90. (A) The Commissiondepartment shall adopt and enforce fair and reasonable regulations for appointment, promotion, and demotion of its employees based upon ratings of efficiency and fitness. SuchThese regulations shallmust provide:

(1) for the establishment of a merit system council composed of three personspeople who do not hold political office, are not officers of a political party or organization, are of recognized standing and are in sympathy with the improvement of public administrations and the impartial selection of efficient government personnel on a merit basis, such. These council members tomust be selected for terms of five years,and their initial appointment have beenappointments are for terms of one, three, and five years respectively., and to beThese council members are removable only for cause;

(2)that no employee of the Commission may shall be dismissed except for good cause, that any employee who is dismissed may appeal to the merit system council, and that the decision of the council as to whether or not the termination was for proper cause in accordance with the regulations prescribed under this section shall be binding upon the Commission except in cases of dismissal due to reduction of force or curtailment of funds;

(3)(2) for the holding of examinations to determine the qualification of applicants for vacanciesa vacancy in a classified positionsposition and that, except for temporary appointments not to exceed six months in duration, all personnel shallmust be appointed from registers set up as a result of suchthese examinations; and

(4)(3) that the merit system council shallmust be vested with the control of administration of merit examinations to determine fitness and efficiency and shallmust be charged with the selection and supervision of a supervisor of examinations to conduct actively and administer the merit system of personnel administration set up in accordance with the requirements of this section.

(B) The provisions of this section relating to the merit system shallmay not operate to repeal anya prior act of the General Assembly which may provideforthat provides a State personnel board or which may provide for a joint administration of the merit system for this Commissionthe department and any otheranother department andor state agency of the State, and in so far as the provisions. A provision of this section are in conflictthat conflicts with any such act they shall bethese acts are inoperative. The Commissiondepartment shall not employ or pay anya person who is an officer or committee member of anya political party or organization."

SECTION 40. Section 41-29-100 of the 1976 Code is amended to read:

"Section 41-29-100. The Commissiondepartment may delegate to anya person employed pursuant to Section 41-29-70 sucha power andor authority as it deemsconsiders reasonable and proper for the effective administration of Chapters 27 through 41 of this title, and may in its discretion bond anya person handling moneys or signing checks under suchauthorized to handle money or sign a check pursuant to these chapters."

SECTION 41. Section 41-29-110 of the 1976 Code is amended to read:

"Section 41-29-110. The Commission shall administer Chapters 27 through 41 of this Title and itdepartment may adopt, amend, or rescind such rules and regulationsa rule or regulation in Chapters 27 through 41 of this title, employ such personsa person, make such expendituresan expenditure, require such reports as area report not otherwise provided for in suchthese chapters, make such investigations and take suchan investigation or take other action as it deemsconsiders necessary or suitable to that endadminister its duties and exercise its powers pursuant to the title."

SECTION 42. Section 41-29-120 of the 1976 Code, as last amended by Act 203 of 2002, is further amended to read:

"Section 41-29-120. (A)(1) The commissiondepartment, with the advice and aid of its advisory councils and through its appropriate divisions, shall take all appropriate steps to:

(c)to investigate, recommend, advise, and assist in the establishment and operationestablishing and operating, by municipalities, counties, school districtsa municipality, county, school district, and the State, of reserves for public works to be used in times of business depression and unemployment;and

(d)to promote the reemployment of unemployed workers throughout the State in every other way that may beis feasible; and to these ends

(e)promote the joint electronic filing of Employer Unemployment Insurance Benefits Payments and Reports in conjunction with South Carolina Business One Stop to provide employment units a single point of contact for reporting and paying state taxes."

(2)While pursuing these goals, the department also shall carry on and publish the results of statistical surveys, investigations, and research studies.

(B) The commissiondepartment may require from an employing unit for the commission'sdepartment's cooperation with the Bureau of Labor Statistics of the United States Department of Labor or its successor agency the following reportsthe United States Bureau of Labor Statistics report to:

(1) The United States Bureau of Labor Statistics report to assign industry codes to South Carolina employers under the ES-202 Covered Employment and Wages Program;

(2) The United States Bureau of Labor Statistics report to collect employment information on multiple worksites for South Carolina employers under the ES-202 Covered Employment and Wages Program;

(3) The United States Bureau of Labor Statistics report to collect monthly employment, hours, and earnings from South Carolina employers under the BLS-790 Current Employment Statistics Program;

(4) The United States Bureau of Labor Statistics report to collect employment information from federal employers under the ES-202 Covered Employment and Wages Program; and

(5) The United States Bureau of Labor Statistics report to collect occupational employment and wage information from South Carolina employers under the Occupational Employment Statistics Program.

(C) As used in this section, 'employing unit' means those entitiesan entity employing more than twenty individuals.

(D)The department must institute the following measures to the fullest extent possible under state and federal law:

(1)increase eligibility reviews and investigations as to violations of Sections 41-35-110 and 41-35-120 and enforce appropriate disqualifications and penalties;

(2)increase investigations of violations of Chapter 41, Title 41 and enforce appropriate penalties;

(4)keep detailed voting and attendance records at all commission hearings and make them available to the General Assembly;

(5)keep detailed travel and expense records for commissioners and make them available to the General Assembly;

(6)continue to work with the South Carolina Budget and Control Board and Office of Research and Statistics to develop and continuously improve a customer service portal, to include increased interagency integration and data sharing, and keep the General Assembly regularly informed of its progress in upgrading its computer system through a possible multistate compact in cooperation with the federal government;

(7)report to the Chairman of the House Ways and Means Committee and the Chairman of the Senate Labor, Commerce and Industry Committee within five days of the effective date of this act as to the degree the commission can accomplish or cannot accomplish each subitem in Sections 1 and 2 of this act, and provide reasons why a subitem cannot be accomplished if the commission cannot do so;

(8)report to the Chairman of the House Ways and Means Committee and the Chairman of the Senate Labor, Commerce and Industry Committee on the first day of each month in Fiscal Years 2010 and 2011 on the progress of each request; and

(9)take all other actions necessary and prudent to effectively and efficiently manage the state's unemployment benefits program."

SECTION 43. Section 41-29-130 of the 1976 Code, is amended to read:

"Section 41-29-130. (A) General and special rules may be adopted, amended or rescinded by the Commission onlydepartment after public hearing or opportunity to be heard thereon, ofon them, and for which proper notice has been given. SuchThis notice shallmust be given by mail to the secretaries of the various commercial, business and trade organizations of the State who keep on file with the Commissiondepartment their names and addresses for the purpose of receiving suchthese notices.

(B)AGeneral rules shall becomegeneral rule becomes effective ten days after filing them with the Secretary of State and publication in one or more newspapers of general circulation in this State.

(C)ASpecial rules shall becomespecial rule becomes effective ten days after notification to or mailing to the last known address of the individuals or concerns affected therebyby them.

(D)ARegulationsregulation may be adopted, amended, or rescinded by the Commissiondepartment and shall becomebecomes effective in the manner and at the time prescribed by the Commissiondepartment."

SECTION 44. Section 41-29-140 of the 1976 Code is amended to read:

"Section 41-29-140. The Commissiondepartment may enter into arrangementsan arrangement with the appropriate agenciesagency of other statesanother state or of the Federal Government with respect to the combination of wages, viz.:

(1) The Commission may enter into An agreement with the Federal Government wherebywhere wages or services, upon the basis of which an individual may become entitled to benefits under anyan unemployment compensation law of the Federal Government,shall be deemed to beare considered wages for employment by employersan employer for the purpose of Sections 41-35-10 to 41-35-100; provided, suchif the agency of the Federal Government has agreedagrees to reimburse the fund for suchthe portion of benefits paid under Chapters 27 through 41 of this title uponon the basis of suchthese wages or services as the Commissiondepartment finds will be fair and reasonable and the Commissiondepartment will reimburse suchthe agency of the Federal Government with sucha reasonable portion of benefits paid under any law of the Federal Government uponon the basis of employment or wages for employment by employers as the Commissiondepartment finds will be fair and reasonable to all affected interests.

(2) The Commissiondepartment shall participate in any arrangementsan arrangement for the payment of compensation on the basis of combining an individual's wages and employment covered under Chapters 27 through 41 of this Title with his wages and employment covered under the unemployment compensation laws of other states which arelaw of another state approved by the United States Secretary of Labor in consultation with the state unemployment compensation agencies as reasonably calculated to assure the prompt and full payment of compensation in suchthose situations and which includethat includes provisions for:

(a) applying the base period of a single state law to a claim involving the combining of an individual's wages and employment covered under two or more state unemployment compensation laws, and

(b) avoiding the duplicate use of wages and employment by reason of suchthis combining.

(3) Reimbursement so payable shall be deemed to be benefitsThis reimbursement is considered a benefit for the purpose of Section 41-35-50 and Article 1,of Chapter 33 of this title. The Commissiondepartment may make to otheranother state or Federal agenciesagency and receive from suchanother state or Federal agencies reimbursementsagency reimbursement from or to the fund, in accordance with arrangementsan made pursuant to this section."

SECTION 45. Section 41-29-150 of the 1976 Code is amended to read:

"Section 41-29-150. EachAn employing unit shallmust keep true and accurate work records, containing such information as the Commission may prescribedepartment prescribes. SuchThese records shallmust be open to inspection and be subject to being copied by the Commissiondepartment or its authorized representativesrepresentative at anya reasonable time and as often as may be necessary. The Commissiondepartment and the chairman of anyan appeal tribunal may require from anyan employing unit anya sworn or unsworn report with respect to persons employed by it whichthat he or it deemsconsiders necessary for the effective administration of Chapters 27 through 41 of this title. Information thus obtained,in this manner or obtained from an individual pursuant to the administration of suchthese chapters, shall, except to the extent necessary for the proper administration of such chapters, shall be held confidential and shallmay not be published or be open to public inspection, other than to the public employees in the performance of their public duties, in any manner revealing the individual's or employing unit's identity, but any. However, a claimant or his legal representative at a hearing before an appeal tribunal shallmust be supplied with information from suchthese records to the extent necessary for the proper presentation of his claim. AnyAn employee or member of the Commissiondepartment who violates anya provision of this section shallmust be fined not less than twenty dollars noror more than two hundred dollars, or imprisoned for not longer than ninety days, or both."

SECTION 46. Section 41-29-170 of the 1976 Code, as last amended by Act 203 of 2002, is further amended to read:

"Section 41-29-170. (A) A claimant or a claimant'shis legal representative must be supplied with information from the records, to the extent necessary for the proper presentation of thehis claim in anya proceeding underpursuant to Chapters 27 through 41, subject to restrictions the commissiondepartment may prescribe by regulation prescribe.

(B)(1) Upon written request, the commissiondepartment may furnish information obtained through the administration of Chapters 27 through 42 including, but not limited to, the name, address, ordinary occupation, wages, and employment status of eacha covered worker or recipient of benefits and the recipient's rights to furtheradditional benefits underpursuant to Chapters 27 through 41, to:

(1)(a) an agency or agent of the United States charged with the administration of public works or assistance through public employment;

(2)(b) a state agency similarly charged; orand

(3)(c) an agency or entity to which disclosure is permitted or required by federal statute or regulation or by state law.

(2) This disclosure must be madeis subject to restrictions the commissiondepartment mayprescribe by regulation prescribe.

(C)(1) The State Employment Office shallmust furnish, upon request of a public agency administering the Temporary Assistance to Needy Families (TANF) andor child support programs, a state agency administering food stamp coupons, thea state or federal agency administering the new hire directory, or anya public housing authority, any information in its possession relating to:

(4)(d) whether anyan offer of work has been refused and, if so, a description of the job and the terms, conditions, and rate of pay;

(5)(e) in the case of requests from a public housing authority, a listing of the current employer and previous employers for the available preceding six calendar quarters;

(6)(f) in the case of requests from the state or federal agency whichthat issues food stamp coupons or the new hire directory, a listing of the current employer and address and any previous employers and their addresses, including wage information, for the available preceding six calendar quarters.

The requesting agency is responsible for reimbursing the South Carolina Employment Security Commissiondepartment for actual costs incurred in supplying the information. This information must be provided in the most useful and economical format possible."

SECTION 47. Section 41-29-180 of the 1976 Code is amended to read:

"Section 41-29-180. The Commissiondepartment shall endeavor, both for the relief of the clerical work of employers and its own office, to confine reporting to the minimum necessary for the proper administration of the law, and, except for necessary separation, low earnings, special reports or notices, or wage and employment reports required underpursuant to Section 41-29-140, it shall not require reports as to the earnings of individual employees more frequently than quarterly."

SECTION 48. Section 41-29-190 of the 1976 Code is amended to read:

"Section 41-29-190. In the discharge of the duties imposed by Chapters 27 through 41 of this title, the Commissiondepartment or anya duly authorized representative thereof as designated by its rulesof it may administer oaths and affirmationsan oath and affirmation, take depositionsa deposition, certify to an official actsact and issue subpoenasa subpoena to compel the attendance of witnessesa witness and the production of books, papers, correspondence, memoranda and other records deemedconsidered necessary as evidence in connection with a disputed claim or the administration of such chaptersChapters 27 through 41 of this title."

SECTION 49. Section 41-29-200 of the 1976 Code is amended to read:

"Section 49-21-200. NoA person shallmust not be excused from attending and testifying or from producing books, papers, correspondence, memoranda, or other records before the Commissiondepartment, an appeal tribunal, or anytheir duly authorized representative of either of them or in obedience to the subpoena of either of them in anya cause or proceeding before the Commissiondepartment or an appeal tribunal on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture. But noAn individual shallmust not be prosecuted or subjected to anya penalty or forfeiture for or on account of anya transaction, matter, or thing concerning which he is compelled, after having claimed his privilege against self incrimination, to testify or produce evidence, documentary or otherwise, except that suchthe individual so testifying shallmust not be exempt from prosecution and punishment for perjury committed in so testifying."

SECTION 50. Section 41-29-210 of the 1976 Code is amended to read:

"Section 41-29-210. (1) In case of contumacy by anya person or refusal to obey a subpoena issued to anya person, anya court of this State or judge thereofof this State within the jurisdiction of which suchthe person guilty of contumacy or refusal to obey is found, resides, or transacts business, upon application by the Commissiondepartment or anya duly authorized representative may issue to such personhim an order requiring him to appear before the Commissiondepartment or anya duly authorized representative thereof the department to produce evidence if so ordered to do so or to give testimony touching the matter under investigation or in question. Any Failure to obey an order of the court may be punished as a contempt thereofof the order.

(2) AnyA person who shall, without just cause, fail or refusefails or refuses to attend and testify,; to answer anya lawful inquiry; or to produce books, papers, correspondence, memoranda and other records, if it is in his power to do sothis in accordance with a subpoena of the Commissiondepartment or anya duly authorized representative shallmust be punished by a fine of not less than twenty nor more than two hundred dollars or by imprisonment for not more than thirty days. Each failure to obey a subpoena shall constituteconstitutes a separate offense."

SECTION 51. Section 41-29-220 of the 1976 Code is amended to read:

"Section 41-29-220. The Commissiondepartment may request the Comptroller of the Currency of the United States to cause an examination of the correctness of anya return or report of anya national banking association rendered pursuant to the provisions of Chapters 27 through 41 of this title, and may in connection with suchthis request transmit any suchthis report or return it to the Comptroller of the Currency of the United States as provided in Section 3305(c) of the Federal Internal Revenue Code."

SECTION 52. Section 41-29-230 of the 1976 Code is amended to read:

"Section 41-29-230. (1) In the administration of Chapters 27 through 41 of this title, the Commission shalldepartment must cooperate with the United States Secretary of Labor to the fullest extent consistent with the provisions of suchthese chapters, and shall take such actionact, through the adoption of appropriate rules, regulations, administrative methods and standards, as may be necessary to secure to this State and its citizens all advantages available under the provisions of the Social Security Act that relate to unemployment compensation, the Federal Unemployment Tax Act, the Wagner-Peyser Act, and the Federal-State Extended Unemployment Compensation Act of 1970.

(2) In the administration of the provisions in Chapter 35, Article 3 of this Title, which are enacted to conform with the requirements of the Federal-State Extended Unemployment Compensation Act of 1970, the Commission shall take such action as may bedepartment must act as necessay to:

(a) to ensure that the provisions are so interpreted and applied as to meet the requirements of suchthose Federal act as interpreted by the United States Secretary of Labor,; and

(b) to secure to this State the full reimbursement of the Federal share of extended benefits paid underpursuant to this title that are reimbursable under the Federal act."

SECTION 53. Section 41-29-240 of the 1976 Code is amended to read:

"Section 41-29-240. The Commissiondepartment may make the State's record relating to the administration of Chapters 27 through 41 of this title available to the Railroad Retirement Board and may furnish the Railroad Retirement Board, at the board's expense of such Board, such copies thereofof this record as the Railroad Retirement Board deemsconsiders necessary for its purposes. The Commissiondepartment may afford reasonable cooperation with everyan agency of the United States charged with the administration of an unemployment insurance law."

SECTION 54. Section 41-29-250 of the 1976 Code is amended to read:

"Section 41-29-250. The commission shall cause to be printed for distribution to the public the text of Chapters 27 through 41 of this Title, the Commission's regulations, its general and special rules, its annual reports to the Governor and General Assembly and any other material the Commission deems relevant and suitable and shall furnish such material to any person upon application therefor.The department must:

(A)print and make available for public distribution the text of Chapters 27 through 41 of this title and its:

(1)regulations;

(2)general rules;

(3)special rules;

(4)annual reports to the Governor and General Assembly; and

(5)other material the department considers relevant and suitable.

(B)Furnish this material to a person on request."

SECTION 55. Section 41-29-270 of the 1976 Code is amended to read:

"Section 41-29-270. Notwithstanding the provisions of Chapters 27 through 41 of this title, the Commissiondepartment may issue such regulations as deemed regulation it considers necessary for the operation of an emergency unemployment compensation system in the event of an enemy attack whichthat disrupts or endangers the usual procedures or facilities of the Commissiondepartment."

SECTION 56. Section 41-29-280 of the 1976 Code is amended to read:

"Section 41-29-280. Not later than the fifteenth day of January of each year the Commissionannually, the department shall submit to the Governor and to the General Assembly a report covering the administration and operation of Chapters 27 through 41 of this Title during the preceding fiscal year and shall make such recommendations for amendments to suchthese chapters as the Commission deemsdepartment considers proper. SuchThese reports shallmust include a balance sheet of the moneysmoney in the fund in which there shallmust be provided, if possible, a reserve against the liability in future years to pay benefits in excess of the then current contributions, which reserves shallmust be set up by the Commissiondepartment in accordance with accepted actuarial principles on the basis of statistics of employment, business activity, and other relevant factors for the longest possible period."

SECTION 57. Section 41-29-290 of the 1976 Code is amended to read:

"Section 41-29-290. Whenever the CommissionWhen the department believes that a change in contribution or benefit rates will becomeis necessary to protect the solvency of the fund, it shall promptly somust inform the Governor and the General Assembly of this information and make recommendations with respect theretoregarding it."

SECTION 58. Section 41-33-10 of the 1976 Code is amended to read:

"Section 41-33-10. There is established a special fund, to be known as the unemployment compensation fund, which shallmust be administered separate and apart from all public moneys or funds of the State. This fund shallmust consist of:

(1) All contributions and payments in lieu of contributions collected under Chapters 27 through 41 of this title;

(2) interest earned uponon any moneysmoney in the fund;

(3) Any property or securities acquired through the use of moneysmoney belonging to the fund;

(4) All earnings of suchthose property or securities;

(5) All money credited to this State's account in the unemployment trust fund pursuant to Section 903 of the Social Security Act, as amended;

(6) All money received from the Federal Government as reimbursements pursuant to Section 204 of the Federal-State Extended Compensation Act of 1970; and

(7) All money received for the fund from any otheranother source. All Money in the fund shallmust be comingled and undivided."

SECTION 59. Section 41-33-20 of the 1976 Code is amended to read:

"Section 41-33-20. Subject to the provisions of Chapter 27 through 41 of this title, the Commissiondepartment is invested with the full power, authority, and jurisdiction over the fund, including all moneys andmoney, property or, and securities belonging theretoto it, and may perform any and all acts, whether or not herein specifically designated in this title, which are necessary or convenient in the administration thereofof this title consistent with the provisions of suchthose Chapters."

SECTION 60. Section 41-33-30 of the 1976 Code is amended to read:

"Section 41-33-30. The State Treasurer shall beis ex officio treasurer and custodian of the fund and he shall administer the fund in accordance withit pursuant to the directions of the Commissiondepartment and shall issue his warrants upon it in accordance with suchpursuant to regulations as the Commission shall prescribedepartment prescribes.

SECTION 61. Section 41-33-40 of the 1976 Code is amended to

read:

"Section 41-33-40. All moneysmoney in the fund shallmust be mingled and undivided, but the State Treasurer shall maintain within the fund three separate accounts:

(a) Aa clearing account,;

(b) an unemployment trust fund account; and

(c) a benefit account.

All moneysmoney payable to the fund shall, upon receipt thereofof the money by the Commissiondepartment, must be forwarded to the State Treasurer who shall immediately shall credit themit to the clearing account."

SECTION 62. Section 41-33-45 of the 1976 Code is amended to read:

"Section 41-33-45. (A) The commission shall report, by October first of each year, to the Senate Finance CommitteeGeneral Assembly and to the House Ways and Means CommitteeGovernor the amount in the unemployment trust fund and make an assessment of its funding level.

(B)(1)The annual assessment report must contain a trend chart concerning the Unemployment Reserve Fund's annual balance each year for at least the previous five years. The chart must compare the ending balance for each year with the minimum reserves needed to withstand an average recession and a severe recession.

(2)The annual assessment report must also contain an analysis of the cost paid to beneficiaries and cost-shifting, if any, from companies without a negative balance in their account fund to companies with a negative balance in their fund account. The analysis must be conducted with accepted actuarial principles on the basis of statistics of employment, business activity, and other relevant factors for the longest possible period. The analysis must also include recommendations for adjusting the tax structure to address inequities that arise due to cost shifting."

SECTION 63. Section 41-33-80 of the 1976 Code, as last amended by Act 306 of 2002, is further amended to read:

"Section 41-33-80. Except as provided in Section 41-33-180, moniesmoney must be requisitioned from this state's account in the unemployment trust fund solely for the payment of benefits or refunds pursuant to Section 41-31-360 or item (6) of Section 41-27-260 and in accordance with regulations prescribed by the commission,department; except that money credited to this account pursuant to Section 903 of the Social Security Act, as amended, must be used exclusively as provided in Sections 41-33-130 to 41-33-160."

SECTION 64. Section 41-33-90 of the 1976 Code is amended to read:

"Section 41-33-90. The Commissiondepartment shall from time to time issue its requisition for a lump sum amount for the payment of benefits or refunds upon the Comptroller General who shall draw his warrant on the State Treasurer in the form provided by law. The Treasurer shall pay suchthis amount to the Commissiondepartment by a check drawn on the benefit account, notwithstanding any provisions of law in this State relating to deposit, administration, release and disbursement of moneysmoney in the possession or custody of this State to the contrary notwithstanding. The Commissiondepartment in requisitioning lump sum withdrawals from the State Treasurer for the payment of individual benefit claims shall not exceed in any event the balance of funds in the benefit account, and suchthe requisition shallmust be in an amount estimated to be necessary for benefit payments for sucha period asthat the Commissiondepartment may by regulation prescribe by regulation"

SECTION 65. Section 41-33-100 of the 1976 Code is amended to read:

"Section 41-33-100. Such lump sum amounts when received by the Commissiondepartment from the State Treasurer shallmust be immediately deposited by the Commissiondepartment in a benefit payment account maintained in the name of the Commissiondepartment in suchthat bank or public depository and under such conditions as the Commissiondepartment determines necessary. SuchThe bank or public depository shallmust be one in which general funds of the State may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund or benefit payment account. The Commissiondepartment shall require of suchthe bank or depository as it may selectselects as the depository of the benefit payment account security in an amount equal to the amount on deposit at any time. SuchThis security shallmust consist of securities or a surety bond as required by law of depositories of Statestate funds."

SECTION 66. Section 41-33-110 of the 1976 Code is amended to read:

"Section 41-33-110. The Commissiondepartment shall delegate to designated representatives the authority to sign checks on the benefit payment account and the signature of one of suchthe designated representatives shallmust be required on each such check. The Commissiondepartment shall require each suchthe representative to give a bond in suchan amount as the Commission shall determinedepartment determines for his faithful performance of his duties in connection with the benefit payment account in sucha form as may be prescribed by law or approved by the Attorney General. Premiums for suchthese bonds shallmust be paid from the unemployment compensation administration fund. AnyA duly authorized representative of the Commissiondepartment may draw and issue its checks on the benefit payment account for the payment of individual benefit claims."

SECTION 67. Section 41-33-120 of the 1976 Code is amended to read:

"Section 41-33-120. RefundsA refund payable pursuant to Section 41-31-360 or item (6) of Section 41-27-260 may be paid from the clearing or benefit accounts upon requisition by the Commissiondepartment to the Comptroller General, who shall draw his warrant in the usual form provided by law on the State Treasurer, who shall pay themthe refund from suchthe proper account."

SECTION 68. Section 41-33-130 of the 1976 Code is amended to read:

"Section 41-33-130. Expenditures of moneys An expenditure of money in the benefit account and refundsa refund from the clearing account shallmust not be subject to any provisionsa provision of law requiring a specific appropriationsappropriation or other formal release by Statestate officers of money in their custody. All warrantsA warrant issued for the payment of benefitsa benefit and refunds shalla refund must bear the signature of the Commissiondepartment or a duly authorized agent for that purpose"

SECTION 69. Section 41-33-170 of the 1976 Code is amended to read:

"Section 41-33-170. AnyA balance of moneysmoney requisitioned from the unemployment trust fund under Section 41-33-80 which remains unclaimed or unpaid in the benefit account and the benefit payment account after the expiration of the period for which suchthose sums were requisitioned shalleither must be deducted from estimatesan estimate for, and may be utilizedused for the payment of, benefitsa benefit during a succeeding periodsperiod or, in the discretion of the Commission, shalldepartment, must be redeposited with the Secretary of the Treasury of the United States to the credit of this State's account in the unemployment trust fund, as provided in Section 41-33-50."

SECTION 70. Section 41-33-180 of the 1976 Code is amended to read:

"Section 41-33-180. Moneys may alsoMoney also may be requisitioned from this State's account in the unemployment trust fund for the payment of benefits under anyan unemployment compensation, unemployment insurance, or unemployment benefit law administered by a bureau, department, division, agency, or instrumentality of the United States to which the Commissiondepartment has made available its personnel and facilities for the taking, processing, determination, and paying of claims under the authority ofpursuant to Section 41-29-230. But no moneysNo money may be drawn from the unemployment trust fund for the purpose of paying benefits for or on behalf of the United States unless a provision be first is made by law, agreement, or contract for the reimbursement thereofof the money by the bureau, department, division, agency, or instrumentality of the United States for or on behalf of which suchthe benefits have been paid."

SECTION 71. Section 41-33-190 of the 1976 Code is amended to read:

"Section 41-33-190. The Commissiondepartment may establish bank accounts other than the benefit payment account and deposit therein moneysin them money requisitioned from the unemployment trust fund for the payment of benefits for or on behalf of the United States as provided in Section 41-33-180. All provisions of this article governing the deposit, administration, mode of check signing, and safeguarding of the benefit payment account shallmust apply to any accountsan account established by the Commissiondepartment under the authority of this section."

SECTION 72. Section 41-33-200 of the 1976 Code is amended to read:

"Section 41-33-200. AnyA balance of moneysmoney requisitioned from the unemployment trust fund under Section 41-33-180 which remains unclaimed or not disbursed in such account orthose accounts after the expiration of the period for which suchthe sums were requisitioned shall either must be deducted from estimates for, and utilizedused in the payment of, benefits during succeeding periods or, in the discretion of the Commission, shalldepartment, must be redeposited with the Secretary of the Treasury of the United States to the credit of this State's account in the unemployment trust fund, as provided in Section 41-33-50."

SECTION 73. Section 41-33-210 of the 1976 Code is amended to read:

"Section 41-33-210. The provisions of this article to the extent that they relate to the unemployment trust fund shallmust be operative only so long as the Secretary of the Treasury of the United States continues to maintain for this State a separate book account of all funds deposited thereinin the trust fund by this State for benefit purposes, together with this State's proportionate share of the earnings of suchthe unemployment trust fund, from which no other State is permitted to make withdrawals. If and when suchthe unemployment trust fund ceases to exist or sucha separate book account is no longer maintained, all moneysmoney, properties, or securities thereinin the trust fund belonging to the unemployment compensation fund of this State shallmust be transferred to the treasurer of the unemployment compensation fund, who shall hold, invest, transfer, sell, deposit, and release such moneysthe money, properties, or securities in a manner approved by the Commissiondepartment in accordance with the provisions of Chapters 27 through 41 of this title. But such moneys shallThis money must be invested only in the readily marketable bonds or other interest bearing obligations of the United States or of this State or a political subdivision thereofof this State and suchthese investments shall at all times must be so made so that all the assets of the fund shall always must be readily convertible into cash when needed for the payment of benefits. The treasurer shall dispose of securities or other properties belonging to the unemployment compensation fund only under the direction of the Commissiondepartment in accordance with the purposes and provisions of Chapters 27 through 41 of this title."

SECTION 74. Section 41-33-430 of the 1976 Code is amended to read:

"Section 41-33-430. All moneys which areMoney deposited or paid into the fund are appropriated and made available to the Commissiondepartment. All moneysMoney in this fund shallmust be expended solely for the purpose of defraying the cost of the administration of Chapters 27 through 41 of this title and for no other purpose whatsoever. Any balancesA balance in the fund shallmay not lapse at any time but shall be continuously must be available to the Commissiondepartment for expenditure consistent with Chapters 27 through 41 of this title. The Commissiondepartment shall issue its requisition approved by the chairman or anya designated member, officer, or agent for payment of suchthe costs of administration to the Comptroller General who shall draw his warrant in the usual form provided by law on the State Treasurer, who shall pay it by check on the employment security administration fund."

SECTION 75. Section 41-33-460 of the 1976 Code is amended to read:

"Section 41-33-460. If anyMoney in the employment security administration fund, paid to this State under Title III of the Social Security Act, and the Wagner-Peyser Act, is found by the Secretary of Labor, or his successors, because of anyan action or contingency, to have been lost or to have been expended for purposesa purpose other than, or in amountsan amount in excess of, those found necessary by the Secretary of Labor, or his successors, for the proper administration of the employment security program, it is the policy of this State that suchthe money shallmust be replaced by money appropriated for such purposesthis purpose from the general funds of this State to the employment security administration fund for expenditures as provided in Section 41-33-430. ButFunds whichthat have been expended by the Commissiondepartment or its agents in accordance withpursuant to a budget approved by the Secretary of Labor, or his successors, or in accordance withpursuant to the general standards and limitations promulgated by the Secretary of Labor, or his successors, prior to suchbefore this expenditure, when proposed expenditures have not been specifically disapproved by the Secretary of Labor or his successors, shallmust not be deemedconsidered to require replacement."

SECTION 76. Section 41-33-470 of the 1976 Code is amended to read:

"Section 41-33-470. The Commissiondepartment shall report to the State Budget and Control Board in the same manner as is required generally for the submission of financial requirements for the ensuing year and the board shall include in its request for general appropriations presented to the General Assembly at its next regular session a statement of the amounts required for any replacement required by Section 41-33-460."

SECTION 77. Section 41-33-610 of the 1976 Code is amended to read:

"Section 41-33-610. (aA) There is hereby created in the State Treasury a special fund to be known as the employment security special administration fund, which shallmust consist of all penalties and interest collected on contributions due pursuant to Sections 41-31-330 and 41-31-350 and interest collected on unpaid contributions pursuant to Section 41-31-370. All Money in the special administration fund shallmust be deposited, administered, and disbursed in accord withpursuant to the provisions of Section 41-33-420 applicable to the employment security administration fund.

(bB) All moneys which areMoney deposited in the special administration fund areis appropriated and made available to the Commissiondepartment. All moneysMoney in the fund shallmust be expended solely for:

(1) replacements in the employment security administration fund as provided in Section 41-33-460.;

(3) special, extraordinary, and incidental expenses incurred in the administration of Chapters 27 through 41 of this title not provided for in the employment security administration fund and for which federal funds are not granted by the Federal Government through the Secretary of Labor or its other agencies.

(C)Any balancesA balance in the fund shall not lapse at any time but shallmust be continuously available to the Commissiondepartment for expenditure consistent with Chapters 27 through 41 of this title. The Commissiondepartment shall issue its requisition approved by the chairmanits director or anyhis designated member,officer, or agent for the purposes set forth hereinin this section to the Comptroller General who shall draw his warrant in the usual form provided by law on the State Treasurer, who shall pay it by check on the special administration fund."

SECTION 78. Section 41-33-710 of the 1976 Code is amended to read:

"Section 41-33-710. (aA) There is created in the State Treasury a special fund to be known as the employment security administrative contingency fund, which consists of all assessments collected pursuant to Section 41-27-410. AllMoney in the employment security administrative contingency fund must be deposited, administered, and disbursed in accordance with the provisions of Section 41-33-420 applicable to the employment security administration fund.

(bB) All monies which areMoney deposited in the employment security administrative contingency fund areis appropriate and made available to the commissiondepartment. All moniesMoney in the fund must be expended to:

(1) assist with the reemployment of unemployed workers using the most efficient and effective means of service delivery;

(2) undertake anya program or activity whichthat furthers the goal of the Employment Security Commissiondepartment as provided for in Chapter 42 of this title;

(4) provide employment services, such aslike recruitment, screening, and referral of qualified workers, to agricultural areas where those services have in the past contributed to positive economic conditions for the agricultural industry; and

(5) provide otherwise unobtainable information and analysis to the legislature and program managers about issues related to employment and unemployment.

(C)Any balancesA balance in the fund dodoes not lapse at any time, but areis continuously available to the commissiondepartment for expenditure consistent with Chapter 42 of this title. The commission shalldepartment must issue its requisition approved by the chairmanits director or anyhis designatedmember, officer, or agent for the purposepurposes set forth hereinin this section to the Comptroller General who shall draw his warrant in the usual form provided by law on the State Treasurer, who shall pay it by check on the employment security administrative contingency fund."

SECTION 79. Section 41-35-30 of the 1976 Code is amended to read:

"Section 41-35-30. (A) When benefitsa benefit due an individual havehas been unpaid at the time of death and the estate of suchthe individual has not been administered upon in the probate court within sixty days after the time of death, the Commissiondepartment may pay such benefit amounts as the deceased may have been entitled to:

(1) To the surviving wife or husband and, if there beis none;

(2) To the minor children and, if there beare none;

(3) To the adult children and, if there beare none;

(4) To the parents of the deceased and, if there beare none;

(5) To anya person or persons who were dependent uponon the deceased.

(B)And, If there beis no person within the foregoingthose classifications, the payments due the deceased shallmust lapse and revert intoto the unemployment trust fund.

(C) Payment to anya responsible adult with whom minor children are making their home, upon a written pledge to use suchthe payment for the benefit of suchthese minors, will beis considered proper and legal payment to suchthe minor children without the requirement of formal appointment of a guardian."

SECTION 80. Section 41-35-100 of the 1976 Code is amended to read:

"Section 41-35-100. The Commission shalldepartment must pass such regulations as may be necessary to preserve the benefit rights of individuals who have volunteered or enlistedvolunteer, enlist, or who have beenare called or drafted into anya branch of the military,or naval service, or anyan organization affiliated with the defense of the United States or this State. SuchThese regulations shall, with respect to suchthese individuals, must supersede anyan inconsistent provisionsprovision of Chapters 27 through 41 of this title, but so far aswhere practicable shallmust secure results reasonably similar to those provided in the analogous provisions of suchthese chapters."

SECTION 81. Section 41-35-110 of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:

"Section 41-35-110. An unemployed insured worker shall beis eligible to receive benefits with respect to anya week only if the Commissiondepartment finds thathe:

(1) He has made a claim for benefits with respect to suchthat week in accordance with suchpursuant to regulations as the Commission may prescribeprescribed by the department;

(2) He has registered for work and thereafterafter work has continued to report at an employment office in accordance with such regulations as the Commission may prescribe, except that the Commission maydepartment, by regulation, may waive or alter either or both of the requirements of this paragraph as to individuals attached to regular jobs; provided, that no such regulation shall conflictconflicts with Sections 41-35-10 or 41-35-30;

(3) He is able to work and is available for work at his usual trade, occupation, or business or in such otheranother trade, occupation, or business as hisfor which he is qualified based on his prior training or experience shows him to be fitted or qualified; is available for suchthis work either at a locality at which he earned wages for insured work during his base period or, if the individual has moved, to a locality where it may reasonably be expected that work suitable for him under the provisions of Section 41-35-120(3)(b) is available; and, in addition to having complied with subsection (2), is himself actively seeking work; provided, however,:

(a) notwithstanding any other provisionsanother provision of Chapters 27 through 41 of this title,noan otherwise eligible individual shallmay not be denied benefitsa benefit with respect to anya week in which he is in training with the approval of the Commissiondepartment by reason of the application of the provision hereinof this section relating to availability for work and an active search for work;

(b) Noa claimant shallmay not be eligible to receive benefitsa benefit or waiting period credit if engaged in self-employment of such a nature as to return or promise remuneration in excess of the weekly benefit amounts he would have received if otherwise unemployed over suchthis period of time;

(c)no claimant shall be eligible to receive benefits or waiting period credit following the completion of a temporary work assignment unless the claimant shows that he informed the temporary employment agency that provided the assignment of the assignment's completion, has maintained on-going weekly contact with the agency after completion of the assignment, and that the agency has not provided a subsequent assignment for which the claimant's prior training or experience shows him to be fitted or qualified.

(4) He has been unemployed for a waiting period of one week, but noa week shallmay not be counted as a week of unemployment for the purposes of this paragraph:

(a) unless it occurs within the benefit year whichthat included the week with respect to which he claims payment of benefits,a benefit;

(b) if benefits havea benefit has been paid with respect thereto norto it; and

(c) unless the individual was eligible for benefitsa benefit with respect theretotoit as provided in this section and Section 41-35-120, except for the requirements of this item (4) and of item (5) of Section 41-35-120.;

(5) Claimant ishas separated, through no fault of his own, from his most recent bona fide employer; provided, however, the term 'most recent bona fide employer' shall meanmeans the work or employer from which the individual separated regardless of any work subsequent to his separation in which he earned less than eight times his weekly benefit amount.; and

(6) He participates in reemployment services, such as job search assistance services, if he has beenis determined to be likely to exhaust regular benefits and need a reemployment servicesservice pursuant to a profiling system established by the commissiondepartment, unless the commissiondepartment determines that:

(a) the individual has completed such services; or

(b) there is justifiable cause for the claimant's failure to participate in suchthose services."

SECTION 82. Section 41-35-115 of the 1976 Code, as last amended by Act 21of 1993, is further amended to read:

"Section 41-35-115. Notwithstanding any otheranother provision of law,noan individual otherwise eligible for benefits shalla benefit may not be denied benefitsa benefit with respect to anya week in which he is required by law to appear in court as a witness or to serve as a juror. However, an unemployment benefitsbenefit received by a person pursuant to Chapters 27 through 41 of this title must be reduced by any per diem received for service as a juror. The commission shalldepartment must promulgate regulations necessary to implement the provisions of this section."

SECTION 83. Section 41-35-120 of the 1976 Code, as last amended by Act 50 of 2005, is further amended to read:

(1)(A) leaving work voluntarily. -If the Commissiondepartment finds that he has left voluntarily, without good cause, his most recent work prior to filing a request for determination of insured status or a request for initiation of a claim series within an established benefit year, with ineligibility beginning with the effective date of the request and continuing until he has secured employment and shows to the satisfaction of the Commissiondepartment that he has performed services in employment as defined by Chapters 27 through 41 of this title and earned wages for suchthose services equal to at least eight times the weekly benefit amount of his claim.

(2)(B)Dischargebeing discharged for cause connected with the employment.

(a)(1) If the commissiondepartment finds that he has beenwas discharged for cause connected with his most recent work prior to filing a request for determination of insured status or a request for initiation of a claim series within an established benefit year, with ineligibility beginning with the effective date of the request, and continuing not less than five nor more than the next twenty-six weeks, in addition to the waiting period, with a corresponding and mandatory reduction of the insured worker's benefits to be calculated by multiplying his weekly benefit amount by the number of weeks of his disqualification. The ineligibility period must be determined by the commissiondepartment in each case according to the seriousness of the cause for discharge. A charge of discharge for cause connected with the employment may not be made for failure to meet production requirements unless the failure is occasioned by wilful failure or neglect of duty. 'Cause connected with the employment' as used in this item requires more than a failure in good performance of the employee as the result of inability or incapacity.

(b)(2) An insured worker is considered to have been discharged for cause pursuant to this item, and is ineligible for benefits if the:

(i)(a) company has communicated a policy prohibiting the illegal use of drugs, the violation of which may result in termination; and

(ii)(b) insured worker fails or refuses to provide a specimen pursuant to a request from the employer, or otherwise fails or refuses to cooperate by providing an adulterated specimen; or

(iii)(c) insured worker provides a blood, hair, or urine specimen during a drug test administered on behalf of the employer, which tests positive for illegal drugs or legal drugs used unlawfully, provided:

(A)(i) the sample was collected and labeled by a licensed health care professional or another individual authorized to collect and label test samples by federal or state law, including law enforcement personnel; and

(B)(ii) the test was performed by a laboratory certified by the National Institute on Drug Abuse, the College of American Pathologists or the State Law Enforcement Division; and

(C)(iii) anyan initial positive test was confirmed on the specimen using the gas chromatography/mass spectrometry method, or an equivalent or a more accurate scientifically accepted methodsmethod approved by the National Institute on Drug Abuse.

(iv)(d) for purposes of this item, 'unlawfully' means without a prescription.

(c)(3) If an insured worker makes an admission pursuant to the employer's policy, which provides that voluntary admissions made before the employer's request to the employee to submit to testing may protect an employee from immediate termination, then the admission is inadmissible for purposes of this section as long as the:

(A)(i) employer has communicated a written policy, which provides protection from immediate termination for employees who voluntarily admit prohibited drug use before the employer's request to submit to a test; and

(d)(4) Information, interviews, reports, and drug-test results, written or otherwise, received by an employer through a drug-testing program may be used or received in evidence in proceedings conducted pursuant to the provisions of this title for the purposes of determining eligibility for unemployment compensation, including any administrative or judicial appeal.

(3)(C) failure to accept work.--

(a)(1) If the Commissiondepartment finds that he has failed, without good cause,;

(i)(a) either to apply for available suitable work, when so directed by the employment office or the Commissiondepartment

(ii(b) to accept available suitable work when offered to him by the employment office or an employer,; or

(iii)(c) to return to his customary self-employment,(if any), when so directed by the Commissiondepartment, the ineligibility begins with the week the failure occurred and continues until he has secured employment and shows to the satisfaction of the Commissiondepartment that he has performed services in employment as defined in Chapters 27 through 41 of this title and earned wages for services equal to at least eight times his weekly benefit amount of his claim.

(b)(2) In determining whether or not any work is suitable for an individual, the Commission shalldepartment must consider, based on a standard of reasonableness as it relates to the particular individual concerned, the degree of risk involved to his health, safety, and morals, his physical fitness and prior training, his experience and prior earnings, his length of unemployment and prospects for securing local work in his customary occupation, and the distance of the available work from his residence.

(c)(3) Notwithstanding any other provisionsanother provision of Chapters 27 through 41 of this title, no work is not considered suitable and benefits may not be denied under suchthese chapters to anyan otherwise eligible individual for refusing to accept new work under any of the following conditions:;

(i)(a) if the position offered is vacant due directly to a strike, lockout, or other labor dispute,;

(ii(b) if the wages, hours, or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality,; or

(iii)(c) if, as a condition of being employed, the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization.

(d)(4) Notwithstanding any other provisionsanother provision of Chapters 27 through 41 of this title, noan otherwise eligible individual may not be denied benefitsa benefit for anya week for failure to apply for, or refusal to accept, suitable work because he is in training with the approval of the Commissiondepartment.

(e)(5) Notwithstanding any otheranother provision of this chapter, noan otherwise eligible individual may not be denied benefitsa benefit for anya week because he is in training approved under Section 236(a)(1) of the Trade Act of 1974, nor may the individual be denied benefits by reason of leaving work to enter training, so long asif the work left is not suitable employment, or because of the application to anya week in training of provisions in this law (or anyan applicable federal unemployment compensation law), relating to availability for work, active search for work, or refusal to accept work. For purposes of this subitem, 'suitable employment' means, with respect to an individual, work of a substantially equal or higher skill level than the individual's past adversely affected employment,(as defined for purposes of the Trade Act of 1974), and wages for the work at not less than eighty percent of the individual's average weekly wage as determined for the purposes of the Trade Act of 1974.

(4)(D) labor dispute. -For anya week in which the Commissiondepartment finds that his total or partial unemployment is directly due to a labor dispute in active progress in the factory, establishment, or other premises at which he was last employed. This paragraph does not apply if it is shown to the satisfaction of the Commissiondepartment that he:

(a)(1)He is not participating in, financing, or directly interested in the labor dispute;

(b)(2)He does not belong to a grade or class of workers of which, immediately before he became unemployed by reason of the dispute, there were members employed at the premises at which the dispute exists, any of whom are participating in or directly interested in the dispute. If in any case separate branches of work, which are commonly conducted as separate businesses in separate premises, are conducted in separate departments of the same premises, each department for the purpose of this item (4)subsection (D) is considered to be a separate factory, establishment, or other premises.

(5)(E) receiving benefits elsewhere. -For anya week in which or a part of which he has received or is seeking unemployment benefits under an unemployment compensation law of another state or of the United States. If the appropriate agency of the other state or of the United States finally determines that he is not entitled to unemployment benefits, this disqualification does not apply.

(6)(F) voluntary retirement. -If the Commissiondepartment finds that he voluntarily retired from his most recent work with the ineligibility beginning with the effective date of his claim and continuing for the duration of his unemployment and until the individual submits satisfactory evidence of having had new employment and of having earned wages of not less than eight times his weekly benefit amount as defined in Section 41-35-40. For the purpose of this section, 'most recent work' means the work from which the individual retired regardless of any work subsequent to his retirement in which he earned less than eight times his weekly benefit amount."

SECTION 84. Section 41-35-125 of the 1976 Code, as added by Act 50 of 2005, is amended to read:

"Section 41-35-125. (A) Notwithstanding the provisions of Section 41-35-120, an individual is eligible for waiting week credit and for unemployment compensation if the commissiondepartment finds that the individual has left work voluntarily or has been discharged because of circumstances directly resulting from domestic abuse and:

(1) reasonably fears future domestic abuse at or en route to the workplace;

(2) needs to relocate to avoid future domestic abuse; or

(3) reasonably believes that leaving work is necessary for his safety or the safety of his family.

(B) When determining if an individual has experienced domestic abuse for the purpose of receiving unemployment compensation, the commission shalldepartment must require him to provide documentation of domestic abuse including, but not limited to, police or court records or other documentation of abuse from a shelter worker, attorney, member of the clergy, or medical or other professional from whom the individual has sought assistance.

(C) All Documentation or evidence of domestic abuse acquired by the commissiondepartment pursuant to this section must be kept confidential unless consent for disclosure is given, in writing, by the individual."

SECTION 85. Section 41-35-126 of the 1976 Code. as added by Act 67 of 2007, is amended to read:

"Section 41-35-126. Notwithstanding the provisions of Section 41-35-120, an individual is eligible for waiting week credit and for unemployment compensation if the commissiondepartment finds that the individual has left work voluntarily to relocate because of the transfer of a spouse who has been reassigned from one military assignment to another, provided that the separation from employment occurs within fifteen days of the scheduled relocationdate."

SECTION 86. Section 41-35-130 of the 1976 Code, as last amended by Act 67 of 2007, is further amended to read:

(2) discharge from his most recent work for misconduct; or, (3) refusal of suitable work without good cause shallmust not be charged to the account of anyan employer.

(b)(B) BenefitsA benefit paid to anya claimant shallmust not be charged against the account of anyan employer by reason of the provisions of this subparagraph only if the Commissiondepartment determines under Section 41-35-120 that suchthe individual:

(1) voluntarily left his most recent employment with that employer without good cause,;

(2) was discharged from his most recent employment with that employer for misconduct connected with his work,; or

(3) subsequent to his most recent employment refused without good cause to accept an offer of suitable work made by that employer if, in any such case, suchthe employer furnishes the Commissiondepartment with suchthose notices regarding the separation of the individual from work or the refusal of the individual to accept an offer of work as are or may be required by the law and the regulations of the Commissiondepartment.

(c)(C) If benefits area benefit is paid pursuant to a decision whichthat is finally reversed in subsequent proceedings with respect theretoto it, noan employer's account shallmust not be charged with benefits soa benefit paid.

(d)(D) Any benefitsA benefit paid to anya claimant for a week in which he is in training with the approval of the Commission shalldepartment must not be charged to anyan employer.

(e)(E) The provisions of paragraphs (a)subsections (A) through (d)(D, all inclusive, hereof with respect to the noncharging of benefits paid shallmust be applicable only to those employersan employer subject to the payment of contributions.

(f)(F) BenefitsA benefit paid to a claimant during an extended benefit period as defined in Chapter 35, Article 3, shallmust not be charged to anyan employer; provided, however,except that anya non-profit organization electing to become liable for payments in lieu of contributions in accord with Section 41-31-620 shall be required tomust reimburse fifty percent of extended benefits attributable to services performed in its employ and provided, further, that after January 1, 1979, the State or anya political subdivision or any instrumentality thereofof it as defined in Section 41-27-230(2)(b) electing to become liable for payment in lieu of contributions in accord with Section 41-31-620 shall be required tomust reimburse all extended benefits attributable to services performed in its employ.

(g)(G) AnyA nonprofit organization whichthat elects to make paymentsa payment in lieu of contributions intoa contribution to the unemployment compensation fund as provided in Section 41-31-620(2) or Section 41-31-810 shall not beis not liable to make suchthose payments with respect to the benefits paid to anyan individual whose base period wages include wages for previously uncovered services as defined in Section 41-35-65 to the extent that the unemployment compensation fund is reimbursed for suchthose benefits pursuant to Section 121 of P.L. 94-566.

(h)(H) BenefitsA benefit paid to anyan individual whose base period wages include wages for previously uncovered services as defined in Section 41-35-65 shallmust not be charged against the account of anyan employer to the extent that the unemployment compensation fund is reimbursed for suchthose benefits pursuant to Section 121 of P.L. 94-566.

(i)(I) BenefitsA benefit paid to an individual pursuant to Section 41-35-125 must not be charged to the account of a contributing employer.

(j)(J) BenefitsA benefit paid to an individual pursuant to Section 41-35-126 must not be charged to the account of a contributing employer."

SECTION 87. Section 41-35-140 of the 1976 Code is amended to read:

"Section 41-35-140. (a)(A) The commissiondepartment may require an individual filing a new claim for unemployment compensation to disclose, at the time of filing the claim, whether or not the individualhe owes child support obligations as defined under subsection (gG), or, pursuant to an agreement between the commissiondepartment and the state or local child support enforcement agency, the state or local child support enforcement agency must notify the commissiondepartment whether a particular individual who has filed a new or continued claim for unemployment compensation, at the time of filing the claim, owes child support obligations, or if the state or local child support enforcement agency advises the commissiondepartment that the individual owes child support obligations and the individual is determined to be eligible for unemployment compensation, the commissiondepartment must notify the state or local child support enforcement agency enforcing the obligations that the individual has been determined to be eligible for unemployment compensation.

(b)(B) The commissiondepartment must deduct and withhold from any unemployment compensation payable to an individual who owes a child support obligationsobligation as defined under subsection (gG):

(1) the amount specified by the individual to the commissiondepartment to be deducted and withheld under this section, if neither (2) nor (3) of this subsection (bB) is applicable;

(2) the amount, if any, determined pursuant to an agreement submitted to the commissiondepartment under Section 454 (20)(B)(i) of the Social Security Act by the state or local child support enforcement agency unless (3) is applicable; or

(3) AnyAn amount otherwise required to be deducted and withheld from unemployment compensation pursuant to legal process, as that term is defined in Section 462(e) of the Social Security Act properly served upon the commissiondepartment.

(c)(C) AnyAn amount deducted and withheld under subsection (bB) must be paid by the commissiondepartment to the appropriate state or local child support enforcement agency.

(d)(D)AnyAn amount deducted and withheld under subsection (bB) must for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by the individual to the state or local child support enforcement agency in satisfaction of the individual's child support obligationsobligation.

(e)(E) For the purposes of subsections (aA) through (dD), the term 'unemployment compensation' means any compensation payable under this act, including amounts payable by the commissiondepartment pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect toconcerning unemployment.

(f)(F) This section applies only if appropriate arrangements have been made for reimbursement by the state or local child support enforcement agency for the administrative costs incurred by the commissiondepartment under this section which are by the state or local child support enforcement agency.

(g)(G) The term 'child support obligations' is definedobligation' means for purposes of these provisions,as attributable to a child support obligations beingobligation enforced including only obligations which are beingan obligation enforced pursuant to a plan described in Section 454 of the Social Security Act which has beenand approved by the Secretary of Health and Human Services under Part D of Title IV of the Social Security Act.

(h)(H) The term 'state or local child support enforcement agency' as used in these provisions means anyan agency of this State or a political subdivision of this State operating pursuant to a plan described in subsection (gG).

(i)(I) This section is effective for all weeks commencing on or after October 1, 1982."

SECTION 88. Section 41-35-330 of the 1976 Code is amended to read:

"Section-41-35-330. (1)(A) There is a 'state 'on' indicator' for this State for a week if the commissiondepartment determines, in accordance withpursuant to the regulations of the U. S. Secretary of Labor, that for the period consisting of suchthat week and the immediately preceding twelve weeks the rate of insured unemployment,(not seasonally adjusted), under Chapters 27 through 41 of this title:

(a)(1) equaled or exceeded one hundred twenty percent of the average of suchthose rates for the corresponding thirteen week period ending in each of the preceding two calendar years,; and

(b)(2) equaled or exceeded five percent. With respect to benefits for weeks of unemployment beginning after July 1, 1977, the determination of whether there has been a 'state 'on' or 'off' indicator' for this State beginning or ending anyan extended benefit period must be made under this section as if:

(ii)(b) the word 'five' contained in subparagraph (b) thereofitem (2) of this subsection were 'six' except that, notwithstanding any sucha provision of this section, anya week for which there would otherwise be a 'state 'on' indicator' for this State must continue to be such a week and shallmust not be determined to be a week for which there is a 'state 'off' indicator' for this State.

(2)(B) There is a 'state 'off' indicator' for this State for a week if, for the period consisting of suchthat week and the immediately preceding twelve weeks, either subparagraph (a) or (b) of paragraph (1) wasitems (1) or (2) of subsection (A) are not satisfied.

(3)(C) This section is applicable for allapplies to weeks beginning after September 25, 1982."

SECTION 89. Section 41-35-340 of the 1976 Code is amended to read:

"Section 41-35-340."Rate of insured unemployment", For purposes of Section 41-35-330,'rate of insured unemployment' means the percentage derived by dividing the:

(1) The average weekly number of individuals filing claims for regular state compensation in this State for weeks of unemployment with respect to the most recent thirteen-consecutive-weekthirteen consecutive week period, as determined by the commissiondepartment on the basis of its reports to the U. S. Secretary of Labor, by

(2) The average monthly employment covered under Chapters 27 through 41 of this title for the first four of the most recent six completed calendar quarters ending before the end of suchthis thirteen-week period."

SECTION 90. Section 41-35-410 of the 11976 Code is amended to read:

"Section 41-35-410. Except when the result would be inconsistent with the other provisions of this section, as provided in the regulations of the Commissiondepartment, the provisions of Chapters 27 through 41 of this title which apply to claims for, or the payment of, regular benefits shallmust apply to claims for, and the payment of, extended benefits."

SECTION 91. Section 41-35-420 of the 1976 Code, as last amended by Act 125 of 1993, is further amended to read:

"Section 41-35-420. (1)(A) An individual shall beis eligible to receive extended benefits with respect to any week of unemployment in his eligibility period only if the commissiondepartment finds that with respect to suchthat week:

(a)(1) He is an 'exhaustee' as defined in Section 41-35-390.

(b)(2) He has satisfied the requirements of Chapters 27 through 41 of this title for the receipt of regular benefits that are applicable to individuals claiming extended benefits, including not being subject to a disqualification for the receipt of benefits.

(c)(3) Except as provided in item (d4), an individual shallmust not be eligible for extended benefits for anya week if:

(i)(a) Extended benefits are payable for suchthat week pursuant to an interstate claim filed in anya state under the interstate benefit payment plan; and

(ii)(b) No extended benefit period is in effect for suchthat week in suchthe state.

(d)(4) Item (c3) of subsection (1A) shalldoes not apply with respect to the first two weeks for which extended benefits are payable,(determined without regard to this subsection), pursuant to an interstate claim filed under the interstate benefit payment plan to the individual with respect to the benefit year.

(2)(a)(B)(1) Notwithstanding the provisions of Sections 41-35-410 and 41-35-420, effective for weeks beginning after March 31, 1981, an individual is disqualified forfrom receipt of extended benefits if the commissiondepartment finds that during any week of his eligibility period he has failed either to apply for, or to accept an offer of, suitable work,(as defined under item (d4) of this subsection), to which he was referred by the commissiondepartment.

(b)(2) Notwithstanding the provisions of Sections 41-35-410 and 41-35-420, effective for weeks beginning after March 31, 1981, an individual is disqualified forfrom receipt of extended benefits if the commissiondepartment finds that during any week of his eligibility period he has failed to furnish evidence that he has actively engaged in a systematic and sustained effort to find work.

(c)(3) SuchThis disqualification begins with the week in which suchthe failure occurred and continues until he has been employed in each of four subsequent weeks,(whether or not consecutive), and has earned remuneration equal to not less than four times his weekly extended benefit amount.

(d)(4) For the purposes of this subsection, the term "suitable work' means any work which is within the individual's capabilities to perform if:

(i)(a) The gross average weekly remuneration payable for the work exceeds the sum of the individual's weekly extended benefit amount plus the amount, if any, of supplemental unemployment benefits,(as defined in Section 501(c)(17)(D) of the Internal Revenue Code of 1954), payable to suchthe individual for suchthat week;

(ii)(b) The wages payable for the work equal the higher of the minimum wages provided by Section 6(a)(1) of the Fair Labor Standards Act of 1938,(without regard to anyan exemption), or the state or local minimum wage;

(iii)(c) The position was offered to the individual in writing or was listed with the State Employment Service;

(iv)(d) Suchthe work otherwise meets the definition of 'suitable work' for regular benefits contained in item (3)subsection (C) of Section 41-35-120 to the extent that suchthe criteria of suitability are not inconsistent with the provisions of this item; and

(v)(e) The individual cannot furnish satisfactory evidence to the commissiondepartment that his prospects for obtaining work in his customary occupation within a reasonably short period of time are good. If suchthe evidence is deemed satisfactory for this purpose, the determination of whether any work is suitable with respect to suchthe individual must be made in accordance withpursuant to the definition of suitable work contained in Section 41-35-120 without regard to the definition specified by this item (d4).

(3)(C) Notwithstanding any provisionsa provision of item (d) of this subsection to the contrary, no work shallmust not be deemed to beconsidered suitable work for an individual whichif it does not accord with item (c)(3) of subsection (3)(C) of Section 41-35-120.

(4)(D) For the purposes of item (b)(2) of subsection (2)(B), an individual shallmust be treated as actively engaged in seeking work during anya week if the individual:

(a)(1)The individual has engaged in a systematic and sustained effort to obtain work during suchthe week;

(b)(2) The individual furnishes tangible evidence that he has engaged in suchan effort during suchthe week.

(5)(E) The Employment Service shallmust refer any claimant entitled to extended benefits under this chapter to any suitable work whichthat meets the criteria prescribed in item (d)(4)ubsection (2)(B).

(6)(F) An individual shallmust not be eligible to receive an extended benefitsbenefit with respect to anya week of unemployment in his eligibility period if such individualhe has been disqualified for regular or extended benefits under the chapter because he or she voluntarily left work, was discharged for cause, or failed to accept an offer of or apply for suitable work unless the disqualification imposed for suchthese reasons has been terminated in accordance withpursuant to specific conditions established under the South Carolina Employment Security Law requiring the individual to perform service for remuneration subsequent to the date of suchthe disqualification.

If the disqualification which was imposed did not require the individual to perform service for remuneration subsequent to the date of suchthe disqualification, suchthe individual will beis ineligible for an extended benefitsbenefit beginning with the effective date of the request for initiation of an extended benefit claim series and continuing until he has securedsecures employment and shows to the department's satisfaction of the commission that he has worked in each of at least four different weeks, whether or not suchthose weeks are consecutive, and earned wages equal to at least four times the weekly benefit amount of his claim."

SECTION 92. Section 41-35-450 of the 1976 Code is amended to read:

"Section 41-35-450. WheneverWhen an extended benefit period is to become effective in this State as a result of a state 'on' indicator, or an extended benefit period is to be terminated in this State as a result of a state 'off' indicator, the commissiondepartment must make an appropriate public announcement. ComputationsA computation required by the provisions of Section 41-35-340 must be made by the commission, in accordance withdepartment pursuant to regulations prescribed by the U. S. Secretary of Labor."

SECTION 93. Section 41-35-610 of the 1976 Code is amended to read:

"Section 41-35-610. Requests A request for determination of insured status, requestsa request for initiation of a claim series in a benefit year, noticesa notice of unemployment, certificationsa certification for waiting-week credit, and claimsa claim for benefits shallmust be made in accordance with suchpursuant to regulations as the Commission may prescribedepartment prescribes. Each employer shallAn employer must post and maintain in places readily accessible to individuals in his service printed statements concerning such regulations or such otherrelated matters as the Commission maydepartment prescribes by regulation prescribe. Each employer shallAn employer must supply suchthose individuals copies of suchthe printed statements or materials as the Commission maydepartment prescribes by regulation prescribe. SuchThese statements or materials shallmust be supplied by the Commissiondepartment to eachan employer without cost to himthe employer."

SECTION 94. Section 41-35-630 of the 1976 Code is amended to read:

"Section 41-35-630. (1)(A) In anya case in whichwhere the payment or denial of benefitsa benefit will be determined by the provisions of item (4)subsection (D) of Section 41-35-120, the Commission shalldepartment must designate a special examiner to make an initial determination with respect theretoto it. The determination of the examiner may be appealed in the same manner, within the same time, and through the same procedures as any other determination. The Commissiondepartment may, upon written request by a group of workers or their authorized representative, allow one of a group representing a grade or class of workers similarly situated to file an appeal which shall be known as a 'Group Test Appeal', and the decision of the appeal tribunal or the Commission as todepartment regarding the disqualification of the group representative because of the application of item (4)subsection (D) of Section 41-35-120 shall beis binding as toon the entire group.

(2)(B) WheneverWhen a determination involves multiple claimants and difficult issues of fact or law, the Commissiondepartmentin its discretion may designate a special examiner to render suchthe determination. TheA determination,of the examinerwhich may be appealed in the same manner, within the same time, and through the same procedures as any other determination. The Commission shalldepartment must allow any and all claimantsa claimant affected by the samethis determination to join in one appeal and the decision of the appeal tribunal or the Commission shall beis binding uponon all those claimants who are parties to suchthe consolidated appeal."

SECTION 95. Section 41-35-640 of the 1976 Code, as last amended by Act 203 of 2002, is further amended to read:

"Section 41-35-640. (1)(A) An initial determination may for good cause be reconsidered. A party entitled to notice of an initial determination may apply for a reconsideration not later than ten days after the determination was mailed to his last known address. Notice of the redetermination must be promptly given in the manner prescribed in this article with respect to notice of an initial determination.

(2)(B) An initial determination shallmust be reconsidered wheneverwhen the Commissiondepartment finds that an error in computation, or an error of a similar character, has occurred in connection therewithwith it or that wages of the claimant pertinent to the determination, but not considered in connection therewithwith it, have been newly discovered,.but no suchHowever, this redetermination shallmust not be made after one year from the date of the original determination. The reconsidered determination shall supersedesupersedes the original determination. Notice of any suchthis redetermination shall be promptly must be given, in the manner prescribed in this article with respect to notice of an original determination. Subject to the same limitations and for the same reasons, the Commissionsdepartment may reconsider a determination in anya case in which thewhere a final decision has beenis rendered by an appeal tribunal, the Commissiondepartment, or a court, and, after notice to and the expiration of the period for appeal by the persons entitled to notice of the final decision, may apply to the body or court whichthat rendered the final decision to issueand seek a revised decision. In the event that an appeal involving an original determination is pending as ofon the date a redetermination thereof is issued, suchthe appeal, unless withdrawn, shallmust be treated as an appeal from suchthe redetermination."

SECTION 96. Section 41-35-670 of the 1976 Code is amended to read:

"Section 41-35-670. (1)(A) Notwithstanding any otheranother provision contained in this Article, benefits shallmust be paid in accordance withpursuant to a determination, redetermination, or the decision of an appeal tribunal, the Commissiondepartment, or a reviewing court upon the issuance of suchthat determination, redetermination, or decision, regardless of the pendency of the period to apply for reconsideration, file an appeal, or petition for judicial review that is provided with respect thereto, as the case may be,to it or the pendency of any such an application, filing, or petition, unless and until suchthe determination, redetermination, or decision has been modified or reversed by a subsequent redetermination or decision, in which event benefits shallmust be paid or denied for weeks of unemployment thereafter in accordance with suchafterward pursuant to the modifying or reversing redetermination or decision.

(2)(B) If a determination or redetermination allowing benefitsa benefit is affirmed by the appeal tribunal, or by the Commissiondepartment, or if a decision of an appeal tribunal allowing benefitsa benefit is affirmed by the Commission, suchdepartment, those benefits shallmust be paid promptly regardless of anya further appeal whichthat may be taken, and no injunction, supersedeas, stay, or other writ or process suspending the payment of the benefits shallmust be issued by any court."

SECTION 97. Section 41-35-680 of the 1976 Code, as last amended by Act 203 of 2002, is further amended to read:

"Section 41-35-680. Unless an appeal is withdrawn, an appeal tribunal, after affording the parties reasonable opportunity for a fair hearing, after notice of not less than seven days, shallmust make findings and conclusions promptly and on the basis of the findings and conclusions affirm, modify, or reverse the determination or redetermination within thirty days from the date of the hearing. Each party must be furnished promptly must be furnishedwith a copy of the decision, including the reasons for the decision,.whichThis must be considered to be the final decision of the commissiondepartment, unless within ten days after the date of mailing the decision a further appeal is initiated pursuant to Section 41-35-710."

SECTION 98. Section 41-35-690 of the 1976 Code is amended to read:

"Section 41-35-690. The procedure herein provided in this chapter for appealsan appeal from anya determination or redetermination to the appeal tribunal and for decisions thereona decision on it and for appeals therefromfrom it, first to the Commissiondepartment and thereafterafterward to the courts, shallmust be the sole and exclusive procedure notwithstanding any otheranother provision of law."

SECTION 99. Section 41-35-700 of the 1976 Code is amended to read:

"Section 41-35-700. (A) To hear and decide appeal claims, the Commission shalldepartment must appoint one or more impartial appeal tribunals consisting in each case of either:

(1) a referee, selected in accordance withpursuant to Section 41-29-70,; or

(2) a body consisting of three members, one of whom:

(a)shall bemust be a referee, who shallmust serve as chairman,;

(b) one of whom shallmust be a representative of employers; and

(c) the otherthird of whom shallmust be a representative of employees.

Each of the latter two members shall serve at the pleasure of the Commissiondepartment and be paid a per diem as fixed in the annual state appropriation act for boards, commissions and committees for each day of active service on sucha tribunal plus necessary expenses, as likewise fixed in the annual appropriation act. NoA person shallmust not participate on behalf of the Commission in any casedepartment in which he is an interested party. The Commissiondepartment may designate alternates to serve in the absence or disqualification of anya member of an appeal tribunal. The chairman shallmust act alone in the absence or disqualification of any otheranother member and his alternate. In no case shall The hearings must not proceed unless the chairman of the appeal tribunal is present. "

SECTION 100. Section 41-35-710 of the 1976 Code is amended to read:

"Section 41-35-710. The Commissiondepartment may on its own motion affirm, modify, or set aside anya decision of an appeal tribunal on the basis of the evidence previously submitted in suchthe case; or direct the taking of additional evidence; or may permit any of the partiesa party to suchthe decision to initiate further appeals before it. The Commission shalldepartment must permit suchthis further appeal by any of the partiesa party to a decision of an appeal tribunal and by the examiner whose decision has been overruled or modified by an appeal tribunal. The Commissiondepartment may remove to itself or transfer to another appeal tribunal the proceedings on anya claim pending before an appeal tribunal. Any proceedings soA proceeding removed to the Commission shalldepartment must be heard by a quorum thereof in accordance withthe director pursuant to the requirements of Sections 41-35-690 and 41-35-720. The Commission shalldepartment promptly must notify the partiesa party to anya proceeding of its findings and decision."

SECTION 101. Section 41-35-720 of the 1976 Code is amended to read:

"Section 41-35-720. The manner in which an appealed claims shallclaim must be presented and the conduct of hearingsa hearing and appeals shallappeal must be in accordance withpursuant to regulations prescribed by the Commissiondepartment for determining the rights of the partiesa party, whether or not suchthese regulations conform to common law or statutory rules of evidence and other technical rules of procedure. A full and complete record shallmust be kept of all proceedings in connection with an appealed claim. All Testimony at anya hearing uponon an appealed claim shallmust be recorded, but shallmust not be transcribed unless the claim is further appealed further."

SECTION 102. Section 41-35-730 of the 1976 Code is amended to read:

"Section 41-35-730. WitnessesA witness subpoenaed pursuant to this article shallmust be allowed fees and mileage at a rate fixed by the Commissiondepartment, which shallmust not exceed that allowed witnessesa witness in the court of common pleas in the county in whichwhere a hearing is held. SuchThese fees shallmust be deemedconsidered a part of the expense of administering Chapters 27 through 41 of this title."

SECTION 103. Section 41-35-740 of the 1976 Code is amended to read:

"Section 41-35-740. AnyA decision of the Commissiondepartment, in the absence of an appeal therefromfrom it as provided in this article, shall becomebecomes final ten days after the date of notification or mailing thereofof it, and judicial review thereof shall beis permitted only after anya party claiming to be aggrieved therebyby it has exhausted his administrative remedies as provided by Chapters 27 through 41 of this title. The Commission shalldepartment must be deemedconsidered to be a party to anya judicial action involving any sucha decision and may be represented in any suchthe judicial action by anya qualified attorney employed by the Commissiondepartment and designated by itthe department for that purpose or, at the Commission'sdepartment's request, by the Attorney General."

SECTION 104. Section 41-35-750 of the 1976 Code, as last amended by Act 387 of 2006, is further amended to read:

"Section 41-35-750. Within thirty days from the date of mailing of the commission'sdepartment's decision, a party to the proceeding whose benefit rights or whose employer account may be affected by the commission'sdepartment's decision may secure judicial review of the decision by commencing an action in the court of common pleas, either in the county in which the employee resides or the county in which he was last employed, against the commissiondepartment for the review of its decision, in which action every other party to the proceeding before the commissiondepartment must be made a defendant. In this action a petition, which need not be verified but which must state the grounds uponon which a review is sought, must be served uponon a member of the commissiondepartment or uponon a person as the commissiondepartment may designate within the time specified by this section. Service is deemedconsidered complete service on all parties, but there must be left with the person served as many copies of the petition as there are defendants, and the commissiondepartment promptly shall mail one copy to each defendant. With its answer the commission shalldepartment must certify and file with the court all documents and papers and a transcript of all testimony taken in the matter and its findings of fact and decision. The commissiondepartment also may certify to the court questions of law involved in anya decision by the commissiondepartment. In a judicial proceeding under this chapter, the findings of the commission as to thedepartment regarding facts, if supported by evidence and in the absence of fraud, must be conclusive and the jurisdiction of the court must be confined to questions of law. These actions, and the questions so certified, must be heard in a summary manner and must be given precedence over all other civil cases except casesthose arising under the Workers' Compensation laws of this State. An appeal may be taken from the decision of the court of common pleas in the manner provided bypursuant to the South Carolina Appellate Court Rules. It is not necessary in a judicial proceeding under this article to enter exceptions to the rulings of the commissiondepartment, and no bond is required for entering the appeal. Upon the final determination of the judicial proceeding, the commission shalldepartment must enter an order in accordance with the determination. In no event shall A petition for judicial review must not act as a supersedeas or stay unless the commissiondepartment orders a supersedeas or stay."

SECTION 105. Chapter 35, Title 41 of the 1976 Code is amended by adding:

"Section 41-35-760.(A)The department must promulgate all regulations described in this chapter and regulations governing procedures at all proceedings, hearings and appeals before the department or any member or employee of the department, including claims for benefit determinations, and all appeals of determinations regarding those claims, and publish all regulations on an electronic website.

(B)Regulations governing procedures at hearings and appeals before the department shall include, at a minimum:

(1)Procedures for seeking a hearing, review, or appeal;

(2)Procedures for notifying parties;

(3)Evidentiary rules;

(4)Procedures for making findings of fact and conclusions of law;

(5)Procedures for making and maintaining an appropriate record of interviews and proceedings before the department; and

(6)Procedures for seeking review or appeal of the department's decision;

(C)All regulations must be promulgated in accordance with the provisions of Chapter 23 of Title 1 of the South Carolina Code of Laws."

SECTION 106. Section 41-37-20 of the 1976 Code is amended to read:

"Section 41-37-20. (1)(A) An employing unit not otherwise subject to Chapters 27 through 41 of this title, which files with the Commissiondepartment its written election to become an employer subject to suchthese chapters for not less than two calendar years, shall, with the written approval of suchthe election by the Commission,department, must become an employer subject to the same extent as all other employers as of the date stated in suchthe approval and shallmust cease to be subject to suchthese chapters as of January first of anya calendar year subsequent to suchthe two calendar years if by the thirtieth day of April of suchthat year it has filed with the Commissiondepartment a written notice to that effect.

(2)(B) AnyAn employing unit, for which services that do not constitute employment as defined in Chapters 27 through 41 of this title are performed, may file with the Commissiondepartment a written election that all such services performed by individualsan individual in its employment in one or more distinct establishments or places of business shall be deemedmust be considered to constitute employment by an employer for all the purposes of suchthose chapters for not less than two calendar years. UponOn the written approval of suchthis election by the Commission suchdepartment, these services shall be deemedmust be considered to constitute employment subject to suchthose chapters from and after the date stated in suchthe approval. SuchThese services shall cease to be deemedconsidered employment subject to suchthese chapters as of January first of anya calendar year subsequent to suchthose two calendar years if by the thirtieth day of April of suchthat year suchthe employing unit has filedfiles with the Commissiondepartment a written notice to that effect."

SECTION 107. Section 41-37-30 of the 1976 Code is amended to read:

"Section 41-37-30. Except as otherwise provided in Section 41-37-20:

(1)(A) As of January 1, 1972, an employing unit shallmust cease to be an employer subject to Chapters 27 through 41 of this title only if it files with the Commissiondepartment by the thirtieth day of April of that year an application for termination of coverage and the Commissiondepartment finds that there were no twenty different weeks within the preceding calendar year within which suchthe employing unit had four or more individuals in employment subject to suchthese chapters.

(2)(B) As of January 1, 1973, an employing unit shall cease to be an employer subject to Chapters 27 through 41 of this title only if it files with the Commissiondepartment by the thirtieth day of April of anya calendar year an application for termination of coverage and the Commissiondepartment finds that there were no twenty different weeks within the preceding calendar year within which suchthe employing unit had at least one individual in employment subject to suchthese chapters and that there was no calendar quarter within the preceding calendar year in which suchthe employing unit paid fifteen hundred dollars or more in wages for service in employment; provided, however,except that no employing unit for which service is performed in employment as defined in Section 41-27-230 (3) shallmay cease to be an employer subject to Chapters 27 through 41 of this title unless it files with the Commission by the thirtieth day of April of any calendar year an application for termination of coverage and the Commission finds that there were nonot twenty different weeks within the preceding calendar year within each of which suchthe employing unit had four or more persons in employment.

(3)(C) As of January 1, 1979, anyan employing unit, as defined in Section 41-27-230(5), shallmust cease to be an employer subject to Chapters 27 through 41 of this title only if it files with the Commissiondepartment by the thirtieth day of April of anya calendar year an application for termination of coverage and the Commissiondepartment finds that there were nonot twenty different weeks within the preceding calendar year within which suchthe employing unit had at least ten individuals in employment subject to Chapters 27 through 41 of this title and that there was no calendar quarter within the preceding calendar year in which suchthe employing unit paid twenty thousand dollars or more in wages for service in employment.

(4)(D) As of January 1, 1979, anyan employing unit, as defined in Section 41-27-230(6), shallmust cease to be an employer subject to Chapters 27 through 41 of this title only if it files with the Commissiondepartment by the thirtieth day of April of anya calendar year an application for termination of coverage and the Commissiondepartment finds that there was no calendar quarter within the preceding calendar year in which suchthe employing unit paid one thousand dollars or more in wages for service in employment.

(5)(E)AnyAn employer who shall havehas rendered no employment and paid no wages in the State for a continuous period of one calendar year may submit an application for termination of coverage upon the resumption of employment in the State. Provided, further, thatHowever, when a successor employer acquired substantially all of the business of a predecessor employer and the experience rating reserve of the predecessor is transferred to the successor, the liability of the predecessor may be terminated at the end of the calendar year during which suchthis succession occurred, provided that the predecessor did not within suchthe calendar year subsequent to the date of succession render employment or pay wages sufficient to remain an employer as defined in Section 41-27-210.

(6)(F) The provisions of this section shallmust not be applicable to anyan employing unit for servicesa service performed in employment as defined by Section 41-27-230(2).

For the purpose of this section, the two or more employing units mentioned in items (3) and (4) of Section 41-27-210 shallmust be treated as a single employing unit."

SECTION 108. Section 41-39-30 of the 1976 Code is amended to read:

"Section 41-39-30. NoAn individual claiming benefits shallmay not be charged fees of any kinda fee in anya proceeding under Chapters 27 through 41 of this title by the Commissiondepartment or its representatives or by anya court or anyan officer (except an attorney),thereofof it. AnyAn individual claiming benefitsa benefit in anya proceeding before the Commissiondepartment or a court maymust be represented by an attorney or other duly authorized agent, but no suchan attorney or agent shall eithermust not charge or receive for such servicesthis service more than an amount approved by the Commissiondepartment. AnyA person who violates anya provision of this section shall, for each such offense, must be fined not less than fifty dollars nor more than five hundred dollars,or imprisoned for not more than six months, or both."

SECTION 109. Section 41-39-40 of the 1976 Code, as added by Act 306 of 1996, is amended to read:

"Section 41-39-40. (A) As of January 1, 1997, an individual filing an initial claim for unemployment compensation must be advised at the time of the filing of the claim that:

(1) Unemployment compensation is subject to federal and state income taxation;

(2) Requirements exist pertaining to estimated tax payments;

(3) The individual may elect to have federal income tax deducted and withheld from the individual's payment of unemployment compensation at the rate specified in the Internal Revenue Code of 1986;

(4) The individual may elect to have South Carolina state income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of seven percent;

(5) The individual is permitted to change a previously elected withholding of income tax at least once.

(B) Amounts deducted and withheld from unemployment compensation shallmust remain in the Unemployment Trust Fund until transferred to the federal or state taxing authority as a payment of income tax. The date of transfer to the South Carolina Department of Revenue must be the same date as the transfer to the Internal Revenue Service.

(C) The commissiondepartment shall follow all procedures specified by the United States Department of Labor and the Internal Revenue Service pertaining to the deducting and withholding of income tax.

(D) Amounts must be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of unemployment compensation, child support obligations, or any other amount required to be deducted and withheld under this title."

SECTION 110. Section 41-41-20 of the 1976 Code, as last amended by Act 202 of 2002, is further amended to read:

"Section 41-41-20. (A) A claimant found by the commissiondepartment knowingly to have made a false statement or who knowingly failed to disclose a material fact when filing a compensable claim to establish his right to or increase the amount of his benefits is ineligible to receive benefits for any week for which the claim was filed and is ineligible to receive further benefits for not less than ten and not more than fifty-two consecutive weeks as determined by the commissiondepartment according to the circumstances of the case, these weeks to commence with the date of the determination.

(B)If the commissiondepartment finds that a fraudulent misrepresentation has been made by a claimant with the object of obtaining benefits under this chapter to which he was not entitled, in addition to any other penalty or prosecution provided under this chapter, the commissiondepartment may make a determination that there must be deducted from benefits to which the claimant might become entitled during this present benefit year or the next subsequent benefit year, or both, an amount not less than two times his weekly benefit amount and not more than his maximum benefit amount payable in a benefit year, as determined under Chapter 35. This deduction takes effect on the date of the determination. An appeal from this determination must be made in the manner prescribed in Chapter 35, Article 5."

SECTION 111. Section 41-41-40 of the 1976 Code, as last amended by Act 202 of 2002, is further amended to read:

"Section 41-41-40.(A)(1) A person who has received a sum as benefits under Chapters 27 through 41 while conditions for the receipt of benefits imposed by these chapters were not fulfilled or while he was disqualified from receiving benefits is liable to repay the commissiondepartment for the unemployment compensation fund a sum equal to the amount received by him.

(2) If full repayment of benefits, to which an individual was determined not entitled, has not been made the sum must be deducted from future benefits payable to him under Chapters 27 through 41, and the sum must be collectible in the manner provided in Sections 41-31-380 to 41-31-400 for the collection of past due contributions.

(3) The commissiondepartment may attempt collection of overpayments through the South Carolina Department of Revenue in accordance with Section 12-56-10, et seq. If the overpayment is collectible in accordance with Section 12-56-60, the commissiondepartment shall add to the amount of the overpayment a collection fee of not more than twenty-five dollars for each collection attempt to defray administrative costs.

(4) Notwithstanding any other provision of this section, no action to enforce recovery or recoupment of any overpayment may begin after five years from the date of the final determination.

(B)(1) A person who is overpaid any amounts as benefits under Chapters 27 through 41 is liable to repay those amounts, except as otherwise provided by this subsection.

(2) Upon written request by the person submitted to the commissiondepartment within the statutory appeal period from the issuance of the determination of overpayment, the commissiondepartment may waive repayment if the commissiondepartment finds that the:

(a) overpayment was not due to fraud, misrepresentation, or wilful nondisclosure on the part of the person;

(b) overpayment was received without fault on the part of the person; and

(c) recovery of the overpayment from the person would be contrary to equity and good conscience.

(C) A person who has received a sum as benefits under the comparable unemployment law of any other state while conditions imposed by that law were not fulfilled or while he was disqualified from receiving benefits by that law is liable to repay the commissiondepartment for the corresponding unemployment compensation fund of the other state a sum equal to the amount received by him if the other state has entered into an Interstate Reciprocal Overpayment Recovery Agreement with the State and has furnished the commissiondepartment with verification of the overpayment as required by the agreement. Recovery of overpayments under this subsection are not subject to the provisions of subsections (A)(3) and (B)."

SECTION 112. Section 41-41-50 of the 1976 Code is amended to read:

"Section 41-41-50. AnyAn employing unit or person who shall wilfully violate anyviolates a provision of Chapters 27 through 41 of this title or anyan order, rule, or regulation thereunderunder this title, the violation of which is made unlawful or the observance of which is required under the terms of suchthese chapters,shall beis liable to a penalty of one thousand dollars, to be recovered by the Commissiondepartment in an appropriate civil action in any a court of competent jurisdiction, and shall also beis guilty of a misdemeanor and shall, upon conviction, must be punished by a fine of not less than twenty nordollars but not more than one hundred dollars or imprisonment for not longer than thirty days, and each day suchthe violation continues shall be deemed to beis considered a separate offense."

SECTION 113. Section 41-42-10 of the 1976 Code is amended to read:

"Section 41-42-10. The South Carolina Employment Security Commission shalldepartment must create a division to be known as the 'South Carolina State Employment Service' which shallthat must establish and maintain free public employment offices in sucha number and in such places as may be necessary for the proper administration of Chapters 27 through 42 of this title and for the purpose of performing such duties as are within the purview of the act of Congress, entitled 'An Act to Provide for the Establishment of a National Employment System and for Cooperation With the States in the Promotion of Such System, and for Other Purposes', approved June 6, 1933 (48 Stat. 113, U. S. Code, Title 29, Section 49(c) as amended). All duties and powers formerly conferred upon any otheron another department, agency or officer of this State relating to the establishment, maintenance, and operation of free public employment offices shall beare vested in suchthis division."

SECTION 114. Section 41-42-20 of the 1976 Code is amended to read:

"Section 41-42-20. The division shallmust be administered by a full-time salaried director, who shall cooperate with anyan official or agency of the United States having powers or duties under provisions of such act of Congress and shall do and perform all things necessary to secure to this State the benefits of that act of Congress in the promotion and maintenance of a system of public employment offices. The Commissiondepartment shall appoint the director and other officers and employees of the State Employment Service. SuchThese appointments shallmust be made in accordance withpursuant to regulations issued under Section 41-29-90."

SECTION 115. Section 41-42-30 of the 1976 Code is amended to read:

"Section 41-42-30. The provisions of the act of Congress mentioned in Section 41-42-10 are hereby accepted by this State, in conformity with Section 4 of that act and this State will observe and comply with the requirements thereofof the act. The South Carolina Employment Security Commissiondepartment is hereby designated and constituted the agency of this State for the purposes of that act."

SECTION 116. Section 41-42-40 of the 1976 Code is amended to read:

"Section 41-42-40. For the purpose of establishing and maintaining free public employment offices the division may enter into agreement with anya political subdivision of this State or with anya private nonprofit organization and as a part of any such agreement the Commissiondepartment may accept moneysmoney, services, or quarters as a contribution to the unemployment compensation administration fund."

SECTION 117. The Legislative Audit Council shall contract for three independent management audits of the department's finance and operations. This first audit must be completed by July 1, 2011, the second audit must be completed by July 1, 2013, and the third audit must be completed by July 1, 2018. The Legislative Audit Council may contract for follow-up audits or conduct follow-up audits as needed based upon the audit's initial findings.

At minimum, the audits required pursuant to this SECTION must:

(1) provide a detailed accounting of the revenues and expenditures from the Unemployment Insurance Trust Fund since 2000;

(2) determine the adequacy of the process for notifying state officials of the financial status of the Unemployment Insurance Trust Fund;

(3) assess alternatives for maintaining the solvency of the Unemployment Insurance Trust Fund;

(4) examine the unemployment eligibility benefit process for efficiency and compliance with law and agency policy; and

(5) evaluate the effectiveness of the Employment Security Commission's programs for assisting claimants in returning to work.

The costs of these audits, including related administrative and management expenses of the Legislative Audit Council, are an operating expense of the department. The department shall pay directly to the Legislative Audit Council the cost of the audits.

SECTION 118. Section 41-27-590 of the 1976 Code is amended to read:

"Section 41-27-590. (A) All criminal actions for violation of any provision of Chapters 27 through 41 of this Titletitle or of any rules or regulations issued pursuant thereto shall be prosecuted by the Attorney General of the State or at his request and under his direction by the solicitor of any circuit or any prosecuting attorney in any court of competent jurisdiction in the county in which the employer has a place of business or the violator resides.

(B)The department must refer all cases of significant claimant and/or employer fraud to the Attorney General to determine whether to prosecute the offender."

SECTION 119. Section 41-29-260 is repealed.

SECTION 120. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION 121. (A) This act takes effect upon approval by the Governor.

(B) Where the provisions of this act transfers the duties and responsibilities of the South Carolina Employment Security Commission (transferring agency) to the Department of Workforce (receiving agency), the employees, authorized appropriations, and real and personal property of the transferring agency are also transferred to and become part of the receiving agency. All classified or unclassified personnel of the transferring agency shall become employees of the receiving agency, with the same compensation, classification, and grade level, as applicable. Where necessary and appropriate, the Budget and Control Board shall cause all necessary actions to be taken to accomplish this transfer and shall in consultation with the agency head of the transferring and receiving agencies prescribe the manner in which the transfer provided for in this section shall be accomplished. The board's action in facilitating the provisions of this section are ministerial in nature and shall not be construed as an approval process over any of the transfers.

(C) Employees or personnel of the transferring agency transferred to or made a part of the receiving agency shall continue to occupy the same office locations and facilities which they now occupy unless or until otherwise changed by appropriate action and authorization. The rent and physical plant operating costs of these offices and facilities, if any, shall continue to be paid by the transferring agency until otherwise provided by the General Assembly. The records and files of the transferring agency shall remain the property of the transferring agency, except that the transferred personnel shall have complete access to these records and files in the performance of their duties as new employees of the receiving agency.

(D) All remaining costs necessary for the implementation and operation of the Department of Workforce shall be provided for by the General Assembly in the annual appropriations act, however, for fiscal year 2008-2009, the funds appropriated to the South Carolina Employment Security Commission shall be credited to the Department of Workforce for the implementation of this act and for the operation needs of the department.